Solid, Low Key Gains for Markets

Nothing spectacular from markets, but the risk of breakout failures eased with today's gains. Best of the action came from the Nasdaq as the risk of a potential 'bull trap' declined. I would like to see the MACD trigger 'sell' reverse to confirm the breakout, but I was happy not to see the 20-day MA undercut which would have just extended the prior consolidation and keep traders reluctant to get involved.


The S&P bounced off the 20-day MA as other indices gained. Volume climbed to register as accumulation as traders perhaps continued to edge in favor of Large Caps.


The Russell 2000 made a welcome recovery but the 'bull flag' remains under pressure. Relative performance continues to deteriorate. A long-term rally needs Small Caps participation and we are still some way from seeing it - this is perhaps the only negative to today's action.


For tomorrow, markets need to continue to push away from support and hit all-time highs. Small Caps have work to do to make up ground on the other indices and they are a bit of a black spot to the health of the broader market rally.


You've now read my opinion, next read Douglas' blog.

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