Financials Weigh Down S&P 500
11/29/2010 9:58 am EST
Though stocks were quiet last week, the divergences between the major averages has become more pronounced. The weekly chart of the Russell 2000 shows a strong close that allows for a breakout above the key resistance in the 746-750 area. The on-balance volume (OBV) is also acting quite strong as it has already moved well above its April highs. We can see a much different picture for the financial-heavy S&P 500, which closed the week lower. The weekly momentum is declining from overbought levels and has dropped below its weighted moving average (WMA). It did form lower highs, and the S&P has first good support at 1156-1170 and then at 1135.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.