The S&P is knocking on the door of 2,125.
The Nasdaq was best positioned for shorts as it mapped a potential double top. But today attracted little interest from shorts. Bulls may see this as an opportunity to push new highs and get above psychological resistance of 5,000. If there was a concern it was weakening relative performance (against the S&P).
The Russell 2000 experienced the biggest loss on the day, but it did little to stop the advance and only scrapped the lows of yesterday. Technicals remain healthy with Rate-of-Change firmly on the positive side of the fence. I would be happier seeing more weakness before the another leg higher, but take it as it comes.
For tomorrow, look for a continuation of buying volume to exceed selling volume. Given the lack of action from shorts there may be limited short covering in the Nasdaq and S&P once new highs are posted.
You've now read my opinion, next read Douglas' and Jani's.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro, register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.