Getting back into the grove after my vacation. The month started with indices pushing new all-time highs on summer trading volume. The past week have seen some easement off those highs but there is plenty of support to work with. For the S&P there is the 20-day MA and breakout support of 2,953 just below. The recent selling did produce a MACD trigger 'sell' but other technicals are all in good shape.

This will be the last post until my return from holidays on July 22nd.  Today finished with a bit of indecision as indices closed with bearish 'black' candlesticks; there were strong opening gaps but no follow through with afternoon buying. The risk is for a gap down tomorrow, which would leave bearish 'reversal evening stars'. The biggest gain came from the Nasdaq. The index gapped over 1%, but this gap didn't clear the April high. Volume was reasonable if a little unspectacular. Relative performance against the S&P remained strong.

It was another good day for Small Cap stocks as the Russell 2000 added over 1% to bring it into a challenge of the June swing high. Just as the declines of the early part of last week were of lesser significance because of the broader trading range between 1,500 and 1,610; the same is true for Thursday's and Friday's gain. The one aspect which is interesting is the improvement in relative performance against the S&P. With money flowing back into Small Caps, the groundwork for a larger, secular rally is been put into place.

A much needed boost to Small Caps gave value buyers a shot in the arm as the Russell 2000 gained nearly 2%, returning it above 200-day and 50-day MAs. It was an important recovery which wasn't quite mirrored by peer indices, but such indices are in much better shape.