With today belonging to sellers - just - it was good to see it accompanied with low volume and very little net change in price. Today was the perfect riposte to recent gains and shows the lack of interest for shorts to act or for longs to sell.
The S&P is knocking on the door of 2,125.
The Nasdaq was best positioned for shorts as it mapped a potential double top. But today attracted little interest from shorts. Bulls may see this as an opportunity to push new highs and get above psychological resistance of 5,000. If there was a concern it was weakening relative performance (against the S&P).
The Russell 2000 experienced the biggest loss on the day, but it did little to stop the advance and only scrapped the lows of yesterday. Technicals remain healthy with Rate-of-Change firmly on the positive side of the fence. I would be happier seeing more weakness before the another leg higher, but take it as it comes.
For tomorrow, look for a continuation of buying volume to exceed selling volume. Given the lack of action from shorts there may be limited short covering in the Nasdaq and S&P once new highs are posted.
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