OVERVIEW: The crazy 2018 market continued today as the indices turned around yesterdays losses and put trade war concerns on the back burner, at least until tomorrow. The Nasdaq Composite and Nasdaq 100 easily led the charge with gains of around 1.5% which were good enough to post all-time highs. The Russell 2000, which caused us some slight concern over the prior two sessions, did advance as well, but lagged behind its peers with a gain of 0.45%. Although we have some concerns with the unevenness of the markets this year, we have to respect the trend and focus on what is working. As always, it pays to shut off the noise and focus on your methodology, pay attention to what is going on within the indices, and stay disciplined taking good swing gains when offered and honoring your stops. Let’s take a look at some index charts where the Nasdaq and Nasdaq 100 each lost a distribution day due to time. This, along with news highs today, help improve the near term outlook.
SPY- The S&P 500 gapped ahead this morning posting a gain of just under 1%, and has once again approached resistance near the $280 level where several other attempts this year have been turned back on approach. A slew of bank earnings starting tomorrow may play a big part in whether the index can break through.