The last week of trading of 2017 looks to be ending near all-time highs, and with markets well placed to continue this form into 2018. The Russell 2000 is looking primed to jump higher with strong pressure at resistance. Of the indices, it's best placed to break higher - negating the November 'bull trap' in the process. The upper channel line is the target for the breakout.  Shorts will need a downside break of the squeeze line with a stop above 1,560.

There wasn't a whole lot to say about today. Profit takers tool advantage of yesterday's gap higher to take some profits.  The Russell 2000 enjoyed the best of the gains yesterday and suffered the worst of the selling today. The selling didn't take out the MACD trigger 'buy' or the 'buy' trigger in ADX.  Support at 1,520 is also available.

Shorts holding on to their short positions in the Semiconductor Index on Friday were made cover today. Today offered a positive break of the 50-day MA with a gap move. Technicals improved although there is still some work to do to change the MACD and Stochastics to a bullish 'buy' trigger. The Russell 2000 accelerated its gains to effectively negate the 'Bull Trap' in a single day's gain.  There was also a new MACD trigger 'buy' to go with the +DI/-DI.  The momentum is there for a move to channel resistance and there is enough time before end-of-year for that move to happen. The Dow short play from Friday didn't get off the ground as the morning gap higher will have dissuaded new positions and forced existing shorts to cover. Volume wasn't great but Technicals are suggesting this may not be moving into a rally acceleration. The S&P gapped higher but as it wasn't a natural resistance level it didn't attract much attention. L

While the S&P (but not the Dow Industrial Average) enjoyed solid gains on heavy volume accumulation it was left to Tech Indices to steal the headlines. The Nasdaq closed the week on new closing highs as volume surged.  The gains were enough to see a new 'buy' trigger in the MACD which keeps the index net bullish.