While there was nothing spectacular from markets, the risk of breakout failures eased with yesterday's gains. Best of the action came from the NASDAQ as the risk of a potential 'bull trap' declined. I would like to see the MACD trigger 'sell' reverse to confirm the breakout, but I was happy not to see the 20-day MA undercut which would have just extended the prior consolidation and keep traders reluctant to get involved.
The S&P bounced off the 20-day MA as other indices gained. Volume climbed to register as accumulation as traders perhaps continued to edge in favor of Large Caps.
The Russell 2000 made a welcome recovery but the 'bull flag' remains under pressure. Relative performance continues to deteriorate. A long-term rally needs Small Caps participation and we are still some way from seeing it - this is perhaps the only negative to today's action.
For today, markets need to continue to push away from support and hit all-time highs. Small Caps have work to do to make up ground on the other indices and they are a bit of a black spot to the health of the broader market rally.