The S&P has broken from its narrow consolidation which had bumped along just below the previous high of 2,400. Current action looks very healthy with technicals supporting price action; a loss of 2,380 would push things back into a consolidation, but not enough to send long-term holders running.
The Nasdaq hasn't quite followed the lead of the S&P but given the strong relative performance it likely won't be long before it's following the lead of Large Cap stocks.
The Russell 2000 made a solid recovery after a series of down days. Buyers were willing to step in at 1,390. The question is now whether they want to take it beyond 1,425. Small Caps have been underperforming for a number of months, but market leadership comes from growth orientated Small Caps. If this relationship changes then it could be a good year for the Russell 2000. The last couple of days looks to be a good buying opportunity with a stop on a loss of 1,380.
The other index to watch is the Semiconductor Index. It has returned to former channel support on a small bullish hammer with technicals a little mixed (bearish CCI, slugging ADX and drifting stochastics). However, psychological support of 1,000 will be important to hold, making the risk:reward attractive for longs.
For tomorrow, look to Semiconductors and Small Caps for summer long trades. Buy-and-Holds remain holds. Shorts have little to play with. Maybe a stalled rally in the Russell 2000 will offer something, but that's not tomorrow's story.
You've now read my opinion, next read Douglas' blog.
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Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free.
. I invest in my pension fund as a buy-and-hold.