Underwhemling Response To French Election Results

It was probably too much to ask for an election result which is closer to maintaining the 'old' status quo than spark anything radical. However, it does offer continuity for markets which should prove favorable down the road. While there was little reaction to the result, markets continue to maintain their bullish stance.

The S&P is above its trading range and holding its breakout with a narrow doji. Volume remained light in line with Friday's.

The Nasdaq is knocking on the door of new highs and despite the narrow intraday range it closed near high of the day. Volume climbed enough to register as accumulation; good news for those looking for more upside.

Small Caps weren't as fortunate, falling slightly, but not enough to undercut support. The decline was sufficient to trigger a MACD 'sell' but other technicals give bulls something to work (the MACD is also in a position to recover from its negative 'sell' trigger given it remains above the bullish zero line).

For Tuesday it will be important for the Russell 2000 to make back some of its lost ground. Further losses will put 1,390 support at risk and open up for a retest of 1,345. Markets look in better shape for Large Caps and Tech, and new highs have a good chance of emerging in the S&P, Dow Jones, and Nasdaq; the Nasdaq 100 having edged a new closing high today.