Rallies Continue Across Markets

After yesterday's brief pause, today was a return to normal service (for bulls). 

The Nasdaq pushed through its 50-day MA, although buying volume did not register as accumulation. However, On-Balance-Volume is building off a 'buy' territory.In addition to getting past its 50-day MA it also took out the March swing high. The index is outperforming the S&P as part of this move. 

The S&P may be losing relative ground to the Nasdaq, but it did manage to close above its 200-day MA. There should be enough to see it start to build the right-hand side of a new base. There should be good support around 4,300 should sellers return. 

The Russell 2000 is nicely positioned to break past resistance and start forming the right-hand side of its base. Despite the sharp reversal in relative performance - against the Nasdaq in particular - it does enjoy net bullish technical strength. All the index needs is some buying volume. Watch for such a breakout from this base which will be a good buying opportunity. 

The indices are all offering bulls something to work with. Short covering will have driven the early bounce, but long-term buyers will control the next phase of the rally. The Russell 2000 still looks to be the best value of the indices.