$SPY $QQQ and $DIA ran into resistance at the 70 RSI. The risk/reward favors a pullback here.
$SPY $QQQ and $DIA found support at the 5 day EMA on Friday at close.
$QQQ is the leading index and $IWM is the laggard.
$IWM had a failed breakout over the $116 resistance and price ended under the 5 day EMA.
The 50 day SMA is currently support for $IWM
The 50 day SMA is still under the 200 day SMA in all major indexes which is bearish.
Year to date returns on $IWM -3.58% $DIA -0.78%, and $SPY +1.16% show that stocks are not under accumulation as an asset class. Stocks are just being traded as a whole with buys into dips and sells into rallies.
The accumulation has been limited to $QQQ +9.76 YTD thanks to the new economy stocks $FB $AMZN $NFLX and $GOOGL. These are companies literally taking over industries.
While MACD is bullish in the indexes it is extended and has a high probability of going sideways and reversing here.
In this type of range bound market in 2015 maximum bullishness on charts is generally when the market reverses.
