Courtesy of Declan.
After yesterday’s FOMC minutes there wasn’t a follow through to the end of day selling. Buyers were able to control the day’s action with a return to highs. The S&P shaped a handle well above 2115 support, and is again in the process of outperforming the Russell 2000.
The Nasdaq also closed near the day’s highs, but it traded lower buying volume and remains a few days off its 52-week high.
The Russell 2000 had perhaps the most disappointing day as it finished with another doji. The last three days have been filled with indecision which is a bit of a fly in the ointment for bulls, but not a rally killer in itself. Bull markets require Small Caps leadership, but unfortunately, Small Caps aren’t leading.
Finally, Nasdaq Breadth is on the rise from a swing low, not from oversold conditions as was the cast in October 2014, but from a situation similar to March of this year.
With the long weekend coming, tomorrow is a last chance for buyers to get in (or out) before the Memorial weekend. It’s a big news day for Europe and the U.S., so plenty of action can be expected.
