After watching the Russell 2000 bounce with the S&P when the S&P 500 bounced off of its trendline, I have decided to also include daily analysis of the S&P.


Path of least resistance: Up. IWM bounced off of its 50-day moving average with volume.
Major Price Points: The $80 area is support from the 50-day moving average and the April 11th,12th and May 1st lows. A break below this would be bearish.
Minor Price Points: Trading over $81.75 would show strength by breaking a 4-day down trend. $83 is a new high.


Path of least resistance: Up. The SPY is on fire and is at new highs.
Major Price Points: The $150 area is new high territory. A long up trendline would break with trading below $147.50.
Minor Price Points: (none)
Worth noting: The Russell 2000 is the dog of the indices, so if the market is heading down then the ER2 should have the better trades. SPY is strong, so on up days it may be a better play. Both of these indices bounced off of support yesterday with high volume, which is bullish. I am expecting a follow-through of this bullish move for today.
General Sentiment: The trend is up and the market is strong.

Path of least resistance: I’m tempted to say down after today’s break of the up trendline. However, the IWM made a new 52-week high only two days ago, so it is difficult to say.
Major Price Points: The $80 area is support from the 50-day moving average and the April 11th & 12th lows. After today, it seems like the IWM must test this support. I would not be surprised to see it touched tomorrow.
Minor Price Points: Trading over $82.50 would show strength/indecision. $83 is a new high. The $81 area is interesting because it was strong resistance in March and the first half of April. It was also support on the April 19th low. What is interesting is that today the IWM closed right in this area.
Worth noting: The Russell 2000 is the dog of the indices, so if the market is heading down then the ER2 should have the better trades. Today was the largest volume in over a month on the IWM, which is bearish.
General Sentiment: The other indices have not yet broken their trendlines, so depite today, the trend is still up and the market is strong.

Path of least resistance: Up. The trend is up and the IWM is at new highs.
Major Price Points: $82-$82.25 is support of a 2-month trendline. A break below this shows weakness. IWM bounced off of this on Friday again. So far this line has been an excellent place to go long.
Minor Price Points: Trading over $83 with volume would be a breakout.
Worth noting: The Russell 2000 is still lagging the other indices.
General Sentiment: The market is on fire.

Path of least resistance: Up. The trend is up and the IWM is at new highs.
Major Price Points: $82-$82.25 is support of a 2-month trendline. A break below this shows weakness. So far this line has been an excellent place to go long.
Minor Price Points: $83 still looks like a price to watch for new highs.
Worth noting: Everything is saying IWM closed at $83.17 - but that’s not what I saw. Strange. It makes the chart look stronger than today really was. Anyway, the Russell 2000 is still lagging the other indices.
It is also worth noting that the volume has been declining, while the price is rising. It would be more bullish to see this move up with increasing volume.
General Sentiment: The market is on fire.

Path of least resistance: Up. The trend is up and the IWM is at new highs.
Major Price Points: $81.70-$81.90 is an area of trendline support. A break below this shows weakness.
Minor Price Points: $83 is a new high.
Worth noting: While the QQQQ, DIA and SPY are all ripping away to new highs, IWM is lagging and is the dog of the bunch.
General Sentiment: The market is on fire.

Path of least resistance: Up. The trend is up and the IWM is very close to new highs.
Major Price Points: $82.50 ($82.64) is new high territory on the IWM. This is resistance and a move over this with volume is a breakout. $81.50-$81.70 is the area of trendline support. A break below this shows some weakness.
Minor Price Points: None.
Worth noting: The QQQQ, DIA and SPY are all trading over their February highs, while the IWM is not. The IWM is lagging and is the weaker of the indices.
General Sentiment: The market bounced off of support with volume, showing some strength.