A solid Friday for indices sets things up nicely for a post-Labor day weekend week. The S&P is the best positioned of the indices, gaining back the ground it lost in the middle part of last week, sitting just below the July swing high. Volume registered as accumulation and technicals are net positive.

The Nasdaq had kept pace with the S&P since the August low, but lost ground in relative performance as it lingered near its 50-day MA. However, despite remaining well off July highs it's an index positioned to gain. The index has held its 50-day MA for two weeks and despite a bearish +DI/-DI trend crossover, is bullish for other technical indicators. For value traders, the Nasdaq is one to watch.

The Russell 2000 (IWM) also gained, but was unable to reverse the bearishness of last Monday's 'black' candlestick. If other indices follow through, then the Russell 2000 could indirectly benefit, but if Bears are to regain control, then the Russell 2000 will be the index attacked.

The index that performed strongest was the Dow Jones Industrial. I had thought the gravestone doji early last week was a topping reversal, but this was negated by Friday's accumulation surge that easily cleared resistance. Technicals are net positive.

For next week, look to the S&P to follow the Dow's lead, but if there is any hesitation, then look for sellers to attack the Russell 2000.

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