It was left to Large Caps to do the heavy lifting today. The Dow Jones Index was today's winner as it added over 1% on heavy volume accumulation. The index is still experiencing relative underperformance to Tech indices, but the gain marks a new swing high and an opportunity for momentum traders to get involved with some more defensive stocks.

Things tick along in markets with little fanfare; the Nasdaq and S&P both registered gains, but the Russell 2000 took a small loss - but not enough to reverse the breakout. The small loss in the Russell 2000 also came with registered distribution, but not overall volume was light - so probably not too damaging. To compound the weakness there were 'sell' triggers in the MACD and On-Balance-Volume to go with the ongoing underperformance of the index relative to both the S&P and Nasdaq. 

A day of small losses but no real damage to the rallies. With the S&P joining the Nasdaq in erasing Covid losses, everyone is waiting for sellers to sweep in and kill this rally but they might be for a surprise. The American Association of Individual Investors sentiment is firmly in the bear column, which means bulls may be the one to benefit as it typically plays as a contrarian indicator.

Markets are posting small gains which in themselves offer little, but over the course of days add up to a stealth rally. Indices remain above key moving averages, which runs in support of the market trend. Tags of 20-day and 50-day MAs have provided buyers an opportunity to buy the dips but for how long? The Nasdaq fell outside of its rising trendline in a slowing of this trend. The 20-day MA is still playing as support but it will take a test of the 50-day MA to assess how much real demand there is. One thing this stealth rally had me overlook was the overbought tracker - the index is in the 10% zone, which means the index has extended beyond 90% of prior price action relative to its 200-day MA dating back to 1971. So a top is closer than some might think.