Friday offered a low key finish to the week with both the S&P and Russell 2000 left much as they were on Thursday - ready to breakout. Technicals are net bullish, with the Russell 2000 enjoying a relative performance advantage against both the Nasdaq and S&P.

The past couple of days have been good for the Russell 2000. There is a bit of upside momentum in addition to an acceleration in relative performance against market leading Nasdaq. All supporting technicals are positive, including a fresh MACD 'buy' trigger today. It's a good time for Small Caps. 

One step back - one step forward. The S&P made back most of yesterday's losses on slightly lighter volume than the previous day's distribution selling. The breakout has yet to occur but today's gain keeps that possibility intact. 

With the week behind us the S&P stood poised to break to new highs for the recovery rally,  following the lead of the Nasdaq which is already posting new multi-year highs. The Russell 2000 is looking a little more tentative as it remains below its 200-day MA on bearish MACD, ADX and relative performance.