S&P 400 Midcap Index (IJH) = Chart of the Day
The small and midcap sectors have lagged the other indexes since the October high. They are both making moves back towards those highs and are in position to move higher. The midcap index has joined the others at the threshold of breaking higher. The primary question at this point is what will be the catalyst to send the market higher? Jobs report was good, retail sales were good, inventory and consumer sentiment were positive? M&A activity is in play and overall positive outlook for the economy. But, the momentum higher just hasn’t shown up yet. Below is our technical view of the index ETF for Midcap:
Closed at $70.75 Friday, December 11th.
Resistance is $71.50 and the short term trend is up. The triangle pattern is being tested to the upside currently and a break accompanied with rising volume would be a positive for the index and the broad market. The average trading volume has been 747k and volume above this level on the break higher would a plus.
The 20 and 50 day moving averages are positive and the closing price is currently above both. As with any investment the key is a defined strategy for the entry point, risk management with a definitive stop, and focus with a defined target. Entry, Exit and Target on every investment before you invest or put money at risk.
