Technical Commentary

July 30, 2009 (FinancialWire) — Dr. Joe Duarte (http://www.joe-duarte.com) recently noted: The Russell 2000 ETF (NYSE: IWM) withstood the selling pressure on Monday and Tuesday. That’s a dynamic worth keeping an eye on in a market that could be ready to transition.

Duarte added: The blue chips are starting to show some weakness. At least there is evidence of a potential consolidation coming. Money will be moving somewhere, at least in the near term.

That means that the small stocks, which lagged the blue chips off the March bottom, could be the beneficiaries. We’ll be watching what happens to IWM as this market continues to develop.

If the smalls rally as the blue chips falter, that would be a very bullish sign for the overall market, as it would be a sign that investors are starting to bet on growth.

Duarte’s conclusion: With the end of the month and a new month just ahead, the next five or six days may be overall bullish for the market. That means that considering a position in the small stocks makes sense.

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Duarte partners with the Investors Resource Center at Investrend Information (http://www.investrendinformation.com).

Duarte’s IntelligentForecasts.com (http://www.intelligentforecasts.com) provides free news coverage and analysis, and his daily articles and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Duarte has combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.

He is the author of: Futures And Options For Dummies, Successful Energy Sector Investing, Successful Biotech Investing and co-author of After-Hours Trading Made Easy. In early 2001, in Successful Energy Sector Investing, he correctly predicted that Venezuela’s political problems could lead to an energy crisis in the United States. He has also appeared as a weekly guest on Market Mavens Radio and has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.

One of CNBC’s original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990. His articles and commentary have been featured on CBS Marketwatch, Barron’s, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines. In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.

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