Markets Consolidate

After two days of gains it was time for consolidation in markets. The Russell 2000 didn’t get this memo and added a third day of gains managing a new closing high.
 

The S&P finished with a doji which tagged all-time high resistance. Technicals haven’t changed from yesterday and relative performance has continued to weaken. The index just has to survive profit-taking and perhaps aggressive shorts looking to take advantage of the resistance tag.
 

The Nasdaq experienced tight action with a narrow intraday spread. Technicals remain net bullish and relative performance is strong.
 

For tomorrow, it’s again about tracking momentum gains in the Nasdaq while looking to the S&P to catch up to Small Cap and Tech leads. Those who missed the boat can look to the Russell 2000 and a possible revisit of 1,390 support over the coming days – a pullback ‘buy’ opportunity. Shorts may be able to attack the narrow doji in S&P and Tech indices and place a stop above today’s (doji) high.