It was a good Tuesday for the as the indecision was negated by a respectable day of buying. Technicals are net bullish, but Tuesday’s volume was a little disappointing given the new all-time highs.
Better was the , in that it registered an accumulation day with a new closing high. There could be a good day trade if Wednesday starts with a gap high, forcing shorts to cover (although there are unlikely to be many), but with no overhead resistance.
The bounced off ’bull flag’ support and will again be challenging February highs after the last failed test in early April. I expect this test to succeed in breaking higher (why? because triple tops are rare).
The is taking baby steps higher, and volume has been reasonable, but hardly spectacular – which is probably a good thing.
is very close to testing its 200-day MA, and may do so as early as Wednesday. This will likely be a profit-taking opportunity, so if you are looking to ease up a little, then will be the time. If (when) it breaks through its 200-day MA, it will set up for a follow-on move to January highs.
Semiconductors have long since said goodbye to the February highs lead indices are struggling with/defending. Tuesday saw a new breakout in the index on very strong technicals. Amazing strength for a sector that had flatlined over 10 years ago at around 500.
Aside from profit-taking for needs, there is little reason to be out of the market at this time, unless you are on the sidelines – in which case, there is a risk. For the record, the Russell 2000 is trading 14% above its 200-day MA that places it in the 10% zone of historic action. I don’t have data on it, but the is running 51%(!) above its 200-day MA; although it was only 10% above at the end of March.