Sellers struck for a second day as the Nasdaq and S&P experienced the first real pull back since rallying off October lows.  There is still a few days before we get to test breakout support but what we have so far is healthy - especially as selling volume has come in below prior buying.  The Nasdaq will likely make it back to support first. 

After last week's strong gain we had a quiet start to the week with indices finishing the day much where they opened.  The one index which may be blinking a little is the Russell 2000.  The index closed with a bearish black candlestick, but even if this plays as true it will only initiate a breakout retest.  There is plenty of room to absorb some weakness without breaking the bullish thesis. 

Indices enjoyed excellent gains last week, but the rate of market ascent is not one which can be maintained in the long run. How markets consolidate over the coming week will say much about the strength of these - very positive - breakouts.  The Russell 2000 finished with a neutral candlestick but the buying of last week came with three heavier days of accumulation.  There was a relative performance uptick versus the Nasdaq to go with these gains.

The Russell 2000 advanced on the second day after its breakout.  Volume climbed to register as distribution with technicals net positive.  All indices gained, but relative performance of Small Caps remained ahead of Large Cap indices. The current rally gives the index some leeway when it comes to consolidating the breakout (and a probable breakout support test).