The Russell 2000 led the market out with a 1%+ gain as relative performance continued to gain ground; the next phase of the Small gap rally is well underway. This is good news for bulls looking for gains to continue throughout the summer.
It was a little more muted for the S&P. Volume was light and 2016 highs haven't been broken yet, but Friday's loss was reversed. The Head-and-Shoulder pattern looks well and truly cooked.
The Nasdaq almost closed above 2016 highs. Shorts may think this is a low risk opportunity, but given action in the Russell 2000 I suspect this will head higher.
The Semiconductor Index had looked bearish on Friday, and Monday followed through on this. It wasn't a big loss, but there may be more follow through in the morning session.
For tomorrow, look for more of the same - gains in lead indices and Russell 2000 in particular, losses in Semiconductors.
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