Markets Consolidate Tuesday's Gains

It's looking like markets are keen to challenge April highs. The narrow consolidations which built up over last week was cleared by Tuesday's gains and held these highs by Wednesday's close.

For the S&P, this came with an accumulation day. Other technicals are net bullish.

The Nasdaq gapped higher on the Tuesday and closed near highs today. Next challenge is 8,176. Technicals are net bullish but are not overbought, leaving plenty of room for a price gain before overbought conditions emerge.

The Russell 2000 broke through 200-day and 50-day MAs but hasn't yet reversed its relative performance vs the Nasdaq, but made small gains vs the S&P.

The best gains were made by the Semiconductor as it recovered ground lost last Friday. Technicals are still net bearish but the technical picture is improving.

For tomorrow, look for the past two days of gains to follow through higher. Action does favour bulls as May swing lows become more established.

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

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Investments are held in a pension fund on a buy-and-hold strategy.

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