Nasdaq and S&P at new highs

It was a good day for indices as both the Nasdaq and S&P managed to finish at new highs. Gains in the Nasdaq were enough to reverse the 'sell' trigger in On-Balance-Volume, returning the index to a net bullish technical picture.

The S&P also managed a new high, but it did so on a lower price advance.

Friday's action had suggested a more sustained period of selling was coming; today's action reversed that by closing above Friday's high - negating the significance of the indecisive doji.

Where things remain indecisive is for the Russell 2000 ($IWM). On a positive note, today's action fit with a bullish reversal harami (inside day). But, because the index is range bound, it may not deliver on this promise. Day traders should watch morning/pre-market action closely for leads.

For tomorrow, we may see some form of consolidation for the Nasdaq and possibly the S&P too. If there is a gain, look to the Russell 2000 ($IWM) to lead, and if it does, there may be enough momentum to see further gains in the Nasdaq and S&P.

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

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