Both the IWMs and the QQQs broke through important resistance levels yesterday, printing fairly decent bars. I'd like to see more volume, but nothings perfect. In addition, we see some strength in the SPYs. On the QQQs and the SPYs we see the EMAs fanning out into a stronger, more bullish formation. We also see the CMFs increasing. In short, the equity charts are looking much better now. In addition, we're seeing an advance where all three averages are making moves. That's a very good sign.
The QQQs are approaching key resistance levels on their weekly chart, and
The IWMs have broken through short-term resistance. Also note the increasing CMF and A/D line above, indicating more participation in the riskier equity index.
While I missed the first part of the rally due to caution, I still believe my concern was warranted. Also note the importance of looking at multiple markets in order to make a decision.
