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.

Markets experienced early gains but gave them back by the close of business. Given the mini-rally of the past five days, some of the indices are looking vulnerable to a new round of selling. The S&P finished with a narrow inverted hammer on low volume but at new highs. A move back to the newly accelerated channel is looking favored. The Nasdaq also finished with a narrow doji but wasn't able to make new highs.  It's already close to one channel but looks more likely to reach down to the slower channel. The Russell 2000 had the best of today's action and looks to be attracting buyers at the expense of other indices. Of the lead indices, it looks best positioned to rally as it continues to challenge its 'Bull Trap'. Semiconductors remain the one index which didn't enjoy the recent run of buying but the failure to undercut 1,211 also gives bulls something to work with. If there is a rally over the next few days it may be enough to start a chall

While it was good day for Tech and Large Cap Indices it was a more muddled day for the Russell 2000 and Semiconductor Index. The Russell 2000 wasn't able to enjoy the fruits of what was low key buying experienced in other indices. A second doji in a row gives shorts something to work with as the 'Bull Trap' continues to influence buyers behavior.

While most indices were able to post small gains it was left to the Semiconductor Index to post a small loss; leaving a bearish engulfing pattern at its 50-day MA and an ideal opportunity for shorts to take advantage of the new (intermediate) downward trend. In such a scenario look for stops above the 50-day MA. The flip side, if there is an early push above the 50-day MA then these same short-stops are likely to trigger an acceleration in the rally and bring fresh buyers in a new long trade; a long trade working off oversold conditions.