The Russell 2000 continued to pull away as the May rally picked up steam. After a period of extended weakness it has managed to push a positive Rate-of-Change - the one indicator which had been strongly bearish until this week. Relative performance added to its new swing high too.
The S&P inched higher in a day where general markets gains were modest. 2,125 is the last hurdle for a close to new all-time highs.
Bears may look to take a punt at the Nasdaq given its proximity to resistance. Short covering could deliver a big pop, so don't be looking to hang on if 4,980 is breached; in such a scenario, a counter long may be more rewarding.
In terms of supporting Nasdaq breadth metrics, the Summation Index is now net bullish in technical strength, joining the percentage of bullish percents and percentage of Nasdaq Stocks above the 50-day MA mapping similar strength.
For tomorrow, look for more of the same. Weakness is a 'buying' opportunity until technicals are net bearish.
You've now read my opinion, next read Douglas' and Jani's.
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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.