|The Russell 2000 has reclaimed its 10-week moving average as this index grinds higher in seemingly slow motion (need I say volume is non-existent?). The real story here is that the small caps have materially underperformed both the Nasdaq and the S&P 500.|
The major indices are in overbought territory on both the daily and weekly timeframes. Extremely bullish markets tend to ignore overbought readings. For example, the S&P 500 monthly chart has been "overbought" since early 2013.
The summer holidaze end soon and next week may prove to be a critical juncture for the current rally.