30May11:15 amEST

No Room for Chickens

Simply put, the small cap stocks housed in the IWM ETF (for the Russell 2000 Index) must attract buyers into each of these intraday dips. As I write this, the IWM is dipping off its morning highs, with no room for chickens in the bull camp if this broad market bounce is to have legs into June. 

Indeed, despite oversold conditions, elevated bearish sentiment to the point where it may be contrarian bullish, and quite a few growth stocks acting very well, it may not mean much unless and until bulls prove tough enough to stomach the constant barrage of trade war and Fed headlines, including the action in Treasuries and crude oil. 

With respect to specific levels on IWM, the 30-minute chart, updated below, indicates that getting back over--and holding above--$149 will be paramount the rest of today. 

Individually, SNAP continues to shine and has been enjoying a persistent underlying bid for a while now. It would not surprise me if a buyout is lurking around the corner. Either way, the stock is not only more than 100% higher than last Christmas, but it is also acting 100% better into bouts of broad market weakness. 

Stock Market Recap 05/29/19 ... Reaching the End of the Line


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