Small-Caps Kiss All-Time Peak

The market was sluggish for much of Tuesday before picking up steam in the second half of action. The continued momentum was beautiful to see as I mentioned the bulls needed to show some follow through. The run to fresh all-time peaks were lead by the small-caps and another bullish sign.

The Dow advanced 35 points, or 0.2%, to close at 19,251. The blue-chips were weak throughout the first half of trading with the bears pushing a low of 19,184. Support at 19,100-19,000 has now held for 10-straight sessions with a solid floor being formed. The push to 19,255 keeps upper resistance at 19,200-19,350 in play. Continued closes above the latter could lead to a move towards 19,500-19,600 by yearend.

The S&P 500 added 7 points, or 0.3%, to finish at 2,212. The index slipped a couple of points to 2,202 shortly after the open with rising support at 2,200-2,195 holding. A move back below 2,190 would be a bearish development. Resistance at 2,215-2,225 was challenged on the bounce to 2,212 ahead of the closing bell. If the latter is cleared, pencil-in a test to 2,250, possibly, over the next 3-4 weeks.

The Nasdaq gained 24 points, or 0.5%, to settle at 5,333. Tech made a brief trip into negative territory midday to 5,299 with fresh upper support at 5,300-5,275 getting slightly stretched. The turnaround to just below 5,334 into the close was a bullish signal. Near-term resistance remains at 5,350-5,375.

The Russell 2000 surged nearly 15 points, or 1.1%, to end at 1,352. The small-caps tested 1,335 intraday with rising support at 1,330-1,325 trying to be established for the rest of the week. Prior resistance at 1,335-1,340 was blown away following the move to 1,353 and another all-time high.

The S&P 500 Volatility Index ($VIX, 11.79, down 0.35) traded in negative territory for much of the day following a brief look at 12.30 on the opening sluggishness. Short-term resistance has now moved down to 12.50-11.50. Continued closes below 11.50 should get a 10 handle and possibility, single-digits on the map.

Analogic (ALOG), Dave & Buster's Entertainment (DAVE), Sigma Designs (SIGM) announced earnings after Tuesday's close.

Hooker Furniture (HOFT), Lulelemon Athletica (LULU), Star Gas Partners (SGU), United Natural Foods (UNFI) are announcing numbers this morning.