Financials Weigh Down S&P 500

11/29/2010 9:58 am EST


Thomas Aspray

, Professional Trader & Analyst

Click to Enlarge

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 The views expressed here are his own.

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on STRATEGIES