The indices gapped up this morning and never looked back. It was the biggest day in about three months and an impressive turnaround from yesterday. Even better, this rally was based on some actual data — manufacturing data out of China and Europe. Several indices made new 52-week (plus) highs today, including the Russell 2000. The S&P 500 and Nasdaq closed inside the gaps from early November, which is the last serious resistance that I see from keeping them from also making new 52-week highs. Once again things are setting up at important technical levels ahead of the monthly payroll data. That report could be make-or-break on Friday morning.
The bear flag is still there on the Nasdaq but I’m a lot less concerned about after today’s rally. I’ll put it out of my mind unless the bottom of that flag is threatened.
The S&P is looking pretty constructive after popping above 1200 and the trading range it’s been in for the last ten sessions.
The small caps made a new ~2.5 year closing high today, although the index is still about two points off of the spring intraday high.
Everything is up again…
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up(+) | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
