On Thursday, Janet Yellen testified before the Senate Banking Committee, saying the Fed planned to continue its bond tapering program, but she also recognized the recent slowing of the economy. Yellen said the Fed would remain responsive to potential signs of further economic weakness going forward.

The market responded tepidly today her comments, rising slowly throughout the day. The Nasdaq gained +26 points (0.63%) and the S&P rose +9 points (+0.49%). The Dow finished the day up +74 points. Volume declined on both the Nasdaq and S&P. However, up volume beat down volume by 2.7 to 1, and advancers outpaced decliners by 1.8 to 1. There were 425 new 52-week highs compared to 34 new 52-week lows.

The Nasdaq closed at a new 14-year high. The S&P closed 4 points below a new all time high. The market's last 4 days of sideways has put the market in a position to breakout with strength. ADX is 16 on the daily S&P which generally signifies range, but range periods eventually lead to range expansion. RSI (TCNet) for the S&P is 67 and rising.

In the market, things can change quickly. But for now, it appears the market is headed higher.