The gains were good to see on Monday, but all they did was extend the bounce off the March swing lows. We still need to see if there is going to be a positive test of the May swing low.
For the NASDAQ, yesterday's gains managed to finish above both its 20-day and 50-day MA. Volume was light but gain did come with a MACD trigger 'buy'. Not to mention, the index continues to outperform the Russell 2000. The other side of Monday's action is that each gain focuses the measured move lower on to the 200-day MA. Convergence increases the possibility of it happening.
The S&P rallied to close the May breakdown gap, but not enough to return itself above the trendline. The index continues to trade ahead of the Russell 2000.
The Russell 2000 (via IWM) did little yesterday and remains under 20-day and 50-day MA. The only thing to watch for is a potential MACD trigger 'buy'. But other than that there was little to comment on.
Monday's action simply extended Friday's trading. It looked good on paper, but didn't change the overall picture. We need to see trading ranges broken on volume to suggest there is an end to the consolidations in play for the NASDAQ and Russell 2000.