Nasdaq and the Russell 2000 Above Resistance 122707

The Nasdaq reached the first target of it’s Santa Claus rally Friday by touching it’s trendline and 50 day moving average. It moved over both Monday. I sold my longs into the rally Monday. A bullish market will either continue higher here, or consolidate. It’s doing a little of both. I’m focusing on longs and window dressing.

UWM is the Ultra-long ETF following the movement of the Russell 2000 Small Cap Index. We’ve got a breakout there too. A pullback to the trendline would make finding setups easier. We’ll have to see how it plays out here. January can be very good for small cap stocks.