Another muted session for the US stock market seen yesterday as the market participants wait for new catalysts to drive the main US stock indices to another fresh all-time highs. The S&P 500 and Nasdaq 100 recorded minor gains of +0.15% to 4,079 and +0.28% to 13,616 respectively while the Dow Jones Industrial Average was almost unchanged at 33,446.
Small-cap stocks underperformed where the Russell 2000 declined by -1.60% to 2,223; its second consecutive session of losses and it closed below its 50-day moving average at 2231. From a technical analysis perspective; the major uptrend phase of Russell 2000 in place since 18 March 2020 low of 966 is at risk of staging a correction as its price action has formed an impending bearish reversal “Head and Shoulders” configuration in place since the recent 10 February swing high with its neckline support coming in at 2085/65.
In addition, market breadth was neutral with the number of declining stocks listed on the NYSE and Nasdaq outpaced advancing stocks by a ratio of 1.28 and 2.15 respectively. Mix performances on the S&P Sectors; 5 of 11 sectors in the green with outperformances seen in Communication Services (+0.72%), Information Technology (+0.54%), and two cyclicals/value plays; Energy (+0.44%) with Financials (+0.41%). In contrast, Industrials and Materials underperformed with losses of -0.44% and -1.75% respectively.