The S&P 500 broke through the 78.6% Fibonacci retracement of its push down from the January highs, which now suggests a retest of the previous highs is coming. \
One of the stronger signs in the market currently is the action of the Russell 2000, which is the one major index that has broken out to fresh highs. When the small caps lead, it tends to be a bullish sign on the short term.
Watch for a retest of highs by the Dow, NASDAQ and S&P and see how that test acts. If we fail to break with good volume, it may be a double top, strong small caps or not.
watch early weakness Monday for a buying op that carries over from last week's strength.
