For the fourth day in a row, the action started slowly but buyers quickly stepped up and produced early momentum. We have three trend days in a row that have produced some V-shaped action, and the bulls are pushing again.
There are some obvious technical issues with this market, as both the Small Cap ETF (IWM) and Mid Cap ETF (MDY) are hitting resistance at their 50-day simple moving averages. These sorts of levels don't seem to matter like they used to, but if you were looking for a short entry based on the charts, this is the spot you would be watching.
What is most notable in the early going is that the small caps are showing relative strength. While the senior indices are close to flat, the IWM is up 0.35% and breadth is running positive.
On the other hand, there isn't much going on with the momentum scans. There are no major pockets of momentum right now other than a few odds and ends like Universal Display (OLED) , Extreme Networks (EXTR) , HTG Molecular (HTGM) and NQ Mobile (NQ) .
This is the sort of trading environment that can be quite frustrating for the bears, as they have a long list of great arguments but the price action just doesn't cooperate.
The S&P500 is hitting the highs of the day as I write, and that triggers fear of missing out. The fear of being caught in a reversal just never seems to materialize.
Technically and fundamentally, further upside should not come easily at this point, which may be exactly why we continue to see solid bids.