Modest gains for S&P and Nasdaq as follow through selling fails to emerge

Index rallies have so far remained remarkably robust even when a move down looks the easiest path. The Nasdaq and S&P experienced selling into Monday and posted two small days worth of gains, albeit on lighter volume. However, the setup continues to look bullish for both indices. Technicals for the S&P are net bullish, but the Nasdaq generated a new 'sell' trigger, although the latter is still outperforming relative to peer indices.

The Nasdaq did record a bullish accumulation day despite the MACD trigger 'sell'.

The Russell 2000 ($IWM) has turned more range-bound, within a larger range. It lurks near 20-day and 50-day MAs, both of which are playing as resistance with the 200-day MA some way below. I had drawn in the possibility of measured move lower from the May high, but the index has done a good job of resisting this; given this, despite recent scrappy action, things could be picking up for bulls./p>

For the coming week, look to the S&P and Nasdaq to continue its advance and perhaps take the Russell 2000 with it. The bull market remains intact.

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

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