Bullish Accumulation

A good day for bulls delivered a breakout in the Dow Jones Industrials Index and across the board accumulation for other indices.

Action in the Dow Jones Index delivered not just a break of declining resistance but a close above the 200-day MA. Technicals are net positive but not yet overbought.

The S&P managed a new closing high as it works its way towards the 200-day MA and declining resistance. The S&P has been underperforming the Russell 2000 since the start of the year but it has been slowly making ground against the latter index.

The Nasdaq was a potential shorting opportunity, and while it hasn't breached declining resistance or suggested short-stops, the chance of it doing so is quite high.

The Russell 2000 rallied into wedge-consolidation resistance and is ready to push for a move to the 200-day MA and declining resistance. Momentum traders can look to buy the breakout should it happen.

For tomorrow, all indices look ready to deliver additional gains. Action over the past week looks to have consolidated the 10%+ advance from the low so the chance of a retest of the aforementioned low is looking significantly less likely.

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