Breakout In Dow Jones Industrial Follows Yesterday's Breakout in Russell 2000

Indices are making their way higher, with the Dow Jones Industrial Average making a clean break of resistance on modest volume. The heavy volume gains came yesterday for this index with technicals net bullish.

The Dow breakout looks good, but the weekly chart points to resistance. The index could run steadily higher along this resistance line, but a breakout would accelerate the advance.

The Russell 2000 ($IWM) added another solid white candlestick to build on yesterday's breakout. This further improved net bullish technical strength and gives the breakout some breathing room to grow. However, the index is now 16.6% above its 200-day MA. A measured move target would offer $296 as a potential price target.

The S&P might have had the best day of the lot. It didn't challenge resistance, but it banked strong volume and left the index nicely primed to push a breakout of its own. Technicals are net bullish. It may be the day-trade long opportunity for Friday.

It wasn't all sunshine. Bitcoin ($BTCUSD) is caught between shaping a bullish ascending triangle or a bearish flag? Today's finish to give a small 'hammer' (although in a non oversold state) favors bulls.

How/If Bitcoin's weakness influences the Nasdaq remains to be seen. So far, there has been little impact in recent weeks, but it's probably keeping traders cautious on pushing it to new highs.

For tomorrow, look for the S&P to lead out if buyers can maintain their momentum. If sellers take an early advantage, then Bitcoin may deliver a short trade.

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

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