Friday left the Russell 2000 (IWM) primed for a breakout and Monday delivered on that setup. By the close of business, the Russell 2000 was left with a bullish "three white soldiers" setup and the potential for more upside. So while the Nasdaq and S&P are near market "extreme" tops, the Russell 2000 is still trading well within itself. Technicals for the Russell 2000 (IWM) are net bullish and improving, but Monday's volume didn't register as accumulation.

The Nasdaq eased off its high, but the losses didn't do a whole lot of technical damage. It has been a number of months since the index last tested its 50-day MA, so if the selling was to continue then I would be looking at a test of this moving average.

The S&P finished with a doji like the Nasdaq. What applies to the Nasdaq also applies to the S&P.

After today's action indices have shown their hand. We have bearish doji in the Nasdaq and S&P that should deliver lower prices in the coming days, but the Russell 2000 (IWM) may pause tomorrow, but I would be looking for gains to resume.

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