Wednesday, September 3, 2014

Zig Zag to Higher Prices

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The Russell 2000 appears to be pulling back in an orderly fashion after it reclaimed its 10-week moving average 2 weeks ago.  After a 4-week rally it would appear this index needs to work off some of its exuberance as early buyers take profits.

More importantly, momentum style growth stocks appear to be moving up on higher volume and consolidating on lower volume.  This bodes well for gains going forward.