Nothing spectacular but after days of tight intraday action, today's action belonged firmly in the bull column. In percentage terms, there wasn't a whole lot to today's gain but relatively, the gain was key.
For the S&P we now have a new closing high on slightly higher volume accumulation. While the MACD has flatlined there is still bullish accumulation trends in On-Balance-Volume and relative performance, alongside strongly overbought stochastics; what is bullish stays bullish until proven otherwise.
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Of greater concern for me is the Russell 2000. The home of more speculative issues was able to generate a bounce off converged 20-day and 50-day MAs. The gain of nearly 2% was enough not just to bounce off former moving averages but also offer a close above the 200-day MA. While today's action was healthy, the index still has to work off a strong relative underperformance against Large Caps and Tech indices. However, today was a step in the right direction.
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The Nasdaq added over 1% as it reignited the rally. Volume climbed to register as accumulation.
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The Semiconductor Index closed at a new closing high, negating what had been a bearish black candlestick. Current action in the Semiconductors Index will help the Nasdaq and Nasdaq 100.
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For tomorrow, with markets at new highs, look for a consolidation of today's gains - or even better - further gains.
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