It was a modest day for the S&P, Dow and NASDAQ indices, but it was a better day for the Russell 2000. The recovery in the Russell 2000 after the channel breakdown took a big step forward as it worked itself off its 50-day MA and finished above its 20-day MA. The breakdown remains, but this will likely shape itself into a broader (more shallow, and therefore more sustainable) rally.
The S&P remained close enough to 1,987 support, but below psychological 2,000. Buying volume eased for a second day after Tuesday's heavier volume distribution. Indecisive bulls will find themselves with another opportunity to participate.
Again, this strength is good news for the Semiconductor index, and the Nasdaq (100). The very tight trading range offers a good risk:reward for longs.
