Bullish Action, But Can Small Caps Get Back on Track? Posted by Coolhand

The bulls took control of the action today as price on both the DWCPF and S&P gapped higher at the open and remained at elevated levels throughout the trading session.

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The S&P easily posted a fresh all-time high, while the DWCPF saw price close above its 50 dma for the first time in the last 8 trading sessions. Momentum ticked higher on both charts. Is this the breakout we're looking for? It might be with the S&P, but the DWCPF has more work to do as resistance looms not terribly far above its closing price.

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Breadth looked very good on the day and signal is solidly bullish right now.

NAAIM came in solidly neutral. That's not much help at all; especially with today's positive action.

It does remain a bull market and I think its heavily coated in Teflon. Still, while the S&P has marched higher within a rising channel, the DWCPF broke its channel several weeks ago and has been moving more sideways (within a range) for about 6 weeks now. So, we don't have an even market at the moment. Maybe the DWCPF plays catch-up. Maybe it doesn't. It's too soon to be sure. With a neutral NAAIM reading I think I'd give this market some room and not get overly bulled up on the positive action we got today. I continue to favor the S&P over the DWCPF until proven otherwise.

I am going to remain neutral with a modest bullish sentiment toward the S&P.