It was a good day for the Russell 2000 (IWM) as yesterday's indecision was negated by a respectable day of buying. Technicals are net bullish, but today's volume was a little disappointing given new all-time highs.
Better was the S&P, in that it registered an accumulation day with a new closing high. There could be a good day trade if tomorrow starts with a gap high, forcing shorts to cover (although there is unlikely to be many), but no overhead resistance.
The equal-weighted S&P bounced off 'bull flag' support and will again be challenging February highs after the last failed test in early April. I expect this test to succeed in breaking higher (why? because triple tops are rare).
The Nasdaq (QQQ) is taking baby steps higher and volume has been reasonable, but hardly spectacular - which is probably a good thing.
Bitcoin (BTC.X) is very close to testing its 200-day MA, and may do so as early as tomorrow. This will likely be a profit taking opportunity, so if you are looking to ease up a little, then will be the time. If (when) it breaks through its 200-day MA, it will set up for a follow on move to January highs.
Semiconductors (SOX) have long since said goodbye to the February highs lead indices are struggling with/defending. Today saw a new breakout in the index on very strong technicals. Amazing strength for a sector that had flatlined over 10 years ago at around 500.
Aside from profit-taking for needs, there is little reason to be out of the market at this time, unless you are on the sidelines - in which case, there is a risk. For the record, the Russell 2000 is trading 14% above its 200-day MA that places it in the 10% zone of historic action. I don't have data on it, but the Semiconductor Index is running 51%(!) above its 200-day MA; although it was only 10% above at the end of March.
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