A good day for markets left the S&P, Dow Jones Industrial Average, Nasdaq, and Russell 2000 in a state of net bullish technical strength. This development puts down a marker for an intermediate (or longer) term rally - lead by the Dow Jones Industrial Average.

I don't normally cover the Dow Jones Index, but it is nicely set up to breakout with a solid cup-and-handle pattern above all lead moving averages and a modest (but confirmed) accumulation day. The index could barely do more. The only spoiler was the relative underperformance against the Nasdaq 100, but price action will always lead.

With the Dow Jones leading it's hard to see the S&P struggling. The index is bumping up against the 200-day MA resistance, but like the aforementioned index, also registered as accumulation day. Relative performance against the Russell 2000 is nose diving, but as previously mentioned, price action is more important. The index has moved beyond the Christmas consolidation, which is a positive.

The Nasdaq is lagging peer indices as it scrambles off its lows. It's some way from its 200-day MA having just regained its 50-day MA. The positive is the relative outperformance versus the S&P, but I would stick to the Large Cap indices for now.

The other strong performer on the day was the Russell 2000 (IWM). It has surged past its 200-day MA and is well on its way to cracking through the November high. There was a marked increase in buying volume and its the lead index in relative performance. The Russell 2000 could be the sleeper hit for the year.

Today was a good marker for the overall market. Bears will have plenty to say, but today has the feel of something better.

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