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Though the short-term A/D analysis did suggest a pullback was likely, the selling was heavier than expected on Friday as the small caps were hit hard and the Russell 2000 as represented by IWM was down over 3%. IWM is still well above key support at $57.50-$58.50. Defensive issues like the utilities and telecom did well. The weekly RS analysis indicates that telecom is starting to perform better than the S&P 500 as it has broken its downtrend and its WMA is now rising.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
