There wasn't much to say after the long weekend. The Nasdaq added to Friday's gain with another narrow day of higher volume accumulation. The gain was small, but as part of the rally from the August swing low it's currently up 6.3%. Technicals are good, and not suggesting any immediate weakness is forthcoming.
Markets finished Friday on a flourish with a close at, or near new highs. Volume climbed to register an accumulation day, which keeps thing ticking over in favor of bulls over the long weekend. The Semiconductors had the best of it, although these gains were posted at the open.
There wasn't a whole lot of action in the indices today. The only index to come out with anything was the Russell 2000. I thought we would have seen today's gain yesterday, but it was welcome all the same. Today's gain for the Russell 2000 also resulted in a return of the net bullish technical picture.
There was still a little doubt in today's action with the bulk of the gains coming on the morning gap. However, it did mean the brief pause from Friday was negated by today's push higher.
The S&P made a challenge on 2,000, but it wasn't able to stick the move higher. Volume was lighter, reflecting a drop in buying interest, but with new highs for Large Caps and Tech indices it's hard to see past the bullish picture.
Friday's action marked a balance between bulls and bears. Tech and Small Cap indices finished with indecisive doji, marking a swing trade opportunity; buy/sell break of Friday's high/low with a stop on the flip side. The S&P and Dow closed lower, but not enough to suggest bears finished the day in control.
The losses in the S&P weren't enough to trigger a 'bull trap', so the long-side play is still favoured. Selling volume was also down on Thursday's buying, another reason to suggest bulls have control. Technicals remain net bullish.