So the Trump Bump continues to play out in favor of bulls. Tuesday delivered a clear breakout of the downward channel with only the 50-day MA left to play as resistance.
From a technical perspective, there are only stochastics [39,1] left to cross the bullish threshold. Although, the index has switched to underperformance relative to the Nasdaq.
With the Russell 2000 (IWM) finally clearing resistance it was an easier day for the S&P 500 and Nasdaq.
Neither did much beyond their opening gaps, but the S&P 500 is challenging its 'bull trap' on net bullish technicals. Despite this, the index is underperforming the Nasdaq.
The Nasdaq did a little better for peer indices and cleared the psychological 20K mark for a third time. This came with a MACD trigger 'buy' along with a 'buy' in ADX.
Volume was a little light, but another upside day would likely bring with it a bull cross in On-Balance-Volume and therefore a new net bullish technical picture.
From a trade perspective, look to the Dow Jones Industrial Average. It finished the day at the resistance of former trend support on a narrow range day.
today will be interesting as near-term stochastics are overbought (although intermediate stochastics are bullish, and not overbought). Look for a short attack.
For today, the likelihood is that there will be some clawback given the sequence of gap-driven candlesticks.
However, if there is a down day, but indices manage to stay near highs, then the chance of the week finishing at new all-time highs (for the Nasdaq and S&P 500) will be quite high.