Small cap stocks were the winners of the day followed by the NASDAQ.  For the first time in over a week the S&P 500 closed in the red.  The same goes for the Dow Jones Industrial Average.  Both indexes were able to escape a day of distribution with support at the lows immediately following the market open.  It was nice to see the Russell 2000 to lead the market higher.  Like the NASDAQ Composite the Russell 2000 had consolidated its move off the October lows.  A push higher here is not out of the question especially when so many hedge fund managers are under water.  Easier to push low float stocks.  This market still remains strong within this current uptrend.  We will continue to act accordingly.

Crude oil continues to push lower and it is good news for many consumers.  Regardless of it is a supply or demand story the commodity is pushing lower.  Does a growing economy always leads to higher commodity prices?  A few are making this argument and they very well may be right down the road.  At the moment, this is not the case.  Stocks continue to push higher ignoring conventional thinking.  Until it course corrects we will continue to stick with the current direction.

Do not make things overcomplicated here.  Stick with what is moving higher and dump what is not.  While this may be oversimplifying a bit, it really is the formula for success.  Forget the nonsense CNBC will have you to believe.  They exist to sell ads and not to make you a successful trader.  Price pays.

More to come from this market and while the S&P 500 has yet to digest its gains we still continue to find stocks providing us with signals to go long.  It does make us believe we have a bit more upside left with this market.  Stick with Big Wave Trading.