Semiconductors again were there to lend a hand as some creeping bearishness was blown away. Bullish Action in the semiconductors has very much fit the bill for a significant market bottom - it's just hard to shake the feeling (especially when you consider cycle analysis) that the bottom has come and gone. But it's a welcome relief all the same.
Small caps came to the fore as market relative strength show Small Caps as top dog {Small caps > Tech > Large Caps}. The Russell 2000 finished above its 200-day MA on a MACD trigger 'buy'. Not to mention the breakout of 515 resistance.
Even the S&P was able to crack above its 200-day MA on higher volume. Not to mention the MACD trigger 'buy' and on-balance-volume bullish cross.
The good news is that the breakouts introduce new clear support; should these break they will create bull traps and it could be a sharp down from there. But bulls have it for now.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.