Over the past six months, the major US indexes have been in a trading range and not making much headway in either direction.
For the NASDAQ and the Russell 2000 (small-caps), all of that has changed. On June 18, both the NASDAQ and the Russell 2000 (see chart below) have broken out of their trading ranges.
With these breakouts, it could signal that a nice move higher is ahead.
While the small caps (Russell 2000) and the NASDAQ have moved higher, we are still waiting on the Dow Jones Industrial Average (DJIA) and the S&P 500 to breakout of their trading ranges.
Here is a chart of the S&P 500:
If the DJIA and S&P 500 can breakout, it will cause bullish investors to take notice and may continue to propel this market higher.
With our commentary Markets Rebound Right On Cue and in this New Breakouts; Will Others Follow? you can tell that our research and conviction continues to be favorable towards the market. There will always be reasons not to invest, but right now the evidence continues to support the current bull market. As a result, we suggest you invest with the bulls.
As always, if and when the facts change – so shall we.