Below we provide six-month candle charts of the Nasdaq Composite, Russell 2,000 (small-caps), S&P 500 and Dow Jones Industrial Average. As shown below, the Nasdaq has traded below its 50-day moving average on an intraday basis three times over the last month or so, and it bounced each time. The most recent 50-day break occurred on Monday, and the index has surged ever since. Today the index made a new all-time intraday high, and it’s looking like a nice break-out could be at hand.
Small-caps are also breaking out today. As shown below, the Russell 2,000 had been trending along its 50-day over the last month or so leading up to this week. After breaking below its 50-day on Monday, it has experienced a nice rally to take it to new bull market highs.
While the Nasdaq and Russell 2,000 have broken out, the large-cap S&P 500 and Dow Jones Industrial Average have yet to do so. Let’s see if they follow in the coming weeks. If they do, bulls will certainly be cheering this market on once again.