S&P and Dow Jones Industrials Posted Gains on Friday
Friday saw the S&P and Dow Jones Industrials continue to post gains as other indices drifted along in narrow trading.
The S&P is on a ribbon rally of small, steady gains that brings its relationship to the 200-day MA to 16.1%, which is between the 99% to 95% of historic price extremes; this is a rally which is running hot. There is no slowdown in technical strength, or bearish divergences to worry about, and relative performance remains good after an extended period of underperformance – so no reason to not see this rally continue despite its extended nature.
The Nasdaq and Russell 2000 had similar days, with little net change and both rallies remaining below prior swing highs. The Nasdaq still enjoys good technical strength, and relative to the Russell 2000, so Friday’s quiet action was of little concern to the big picture.