Last week we saw the market rally. Note the overall uptrend (line A). Also note prices gapped higher at the open on two days (B) and that prices used the EMAs for technical support throughout the week (C).
Risk taking returned, as the small cap stocks outperformed the large caps. Note the microcap stocks moved through two points of resistance (A) and (B). In addition, note the strength of the rally (C) -- there are several gaps higher and multiple days of increases. The only drawback to the rally is the lack of volume.
The transports confirm the rally. Note that prices moved through resistance levels A and B. In addition, the rally (outlined by C) had several strong bars and one gap higher. However, like the microcaps, there is a lack of volume.
