Small Caps drove today's gains, despite the overbought nature of the market. Small Caps extended their relative strength advantage over the other indices. Strength in this index should help lead out the other indices.

Today was just an extension of yesterday's subtle action. The indices barely moved and volume was very light. The two 'big' movers were the Russell 2000 and the Semiconductor Index. The Russell 2000 inched a new closing high. A reflection of its leadership role, even if the Dow Jones holds the headlines. Bulls should be pleased, this is a far more important index for maintaining a rally than the Dow Jones.

Markets took their first step towards consolidating the recent gains. The losses were light and the volume even lighter, but there was little else to add on the day. The S&P remained pegged to resistance despite the narrow loss.

The market added yet another accumulation day as part of seven straight day of gains.  The Russell 2000 maintained its relative leadership roll, despite the smallest of gains today. With Small Caps leading, the potential for this rally to continue remains high.

The following stocks were featured last week as potential long-side trades: Tenet Healthcare Corp, NetEase.com and ISIS Pharmaceuticals , Equitable Resources, Centerpoint Energy, and Duke Energy Corporation .

All indices are in breakout mode. The Nasdaq finally cracked 3,200 resistance which had kept it pegged back. The Russell 2000 and S&P also started to add new legs to their breakouts. However, the bounce in breadth hasn't reversed the bearish divergence, which suggests an end-phase run. New support for the Nasdaq breakout is 3,100.

Today's small gain offset yesterday's modest loss. Volume eased as traders tired of the push to new highs. Supporting technicals erased the remnants of their bearish turn, but it won't take much to send them back. The Russell 2000 rallied to put itself up against resistance. If bears are to make a return, tomorrow would offer a good opportunity to launch an attack.