Base development continued across the board as all lead indices posted gains. The biggest gain came with the Nasdaq as it moved ever closer to its last swing high in September. Technicals for this index are all bullish, with the index making relative gain inroads versus Small Caps. 

Another day when Small Caps maintained their run of good form by closing above the August swing high, but buying volume was down on Thursdays. Technicals remain net bullish and have been since before the mini breakout in October. The only downside was the 'black' candlestick - a higher open but lower close; a close above prior day's close - 'black' candlesticks at a swing high typically mark reversals, so it will be important for buyers on Monday to make a close above the high of this candlestick to negate its potentially bearish implications. 

Yesterday's selling was a flash in the pan quickly undone by today's trading. The Russell 2000 sharply advanced, taking out the August swing high with technicals all firmly in the green. The only negative was the lower volume, but this is a marked advance after the successful test of the 200-day MA.

The Russell 2000 had shown the most promise into last week's close and followed that with a move past the most recent swing high - albeit on light volume. In doing so, it returned above its 50-day MA and brings into play the August high as the next challenge. Technicals are all net bullish, including relative performance. This is perhaps the best indication we have for a trade worthy rally as it looks to return above the all-time highs of 2018.