Yellen Could Spark Rally

On Tuesday, the market opened up, climbed in the morning session, and held its gains into the close. Small cap stocks owned the day, with the Nasdaq up +53 points (+1.25%) and the Russell 2000 climbing +16 points (+1.41%). The S&P rose +13 points (+0.72%) and the Dow advanced +88 points (+0.55%).

Volume was weaker for the S&P but stronger for the Nasdaq. Up volume beat down volume by nearly 4 to 1. Advancing issues were over 2 times as strong as declining issues. Market breath was strong throughout the day, ending at +1526. 

Janet Yellen holds a press conference tomorrow. Her comments could spark a rally in the market. The Nasdaq, S&P, and Dow all closed above their respective 10 SMAs today. All have RSI 20s above 50. Should the market move to the upside tomorrow, the three indices are positioned for it.