Russell 2000 Small Caps Index is leading the US recovery. The iShares Russell 2000 Small Caps ETF broke through resistance at 160, signaling a primary advance with a target of 175. According to Dow Theory, small capitalization stocks typically lead the advance in stage 3 of a bull market, with large caps having exhausted their gains.
But Charles Dow did not have to contend with technology stocks which are a law unto themselves. The Nasdaq 100 broke through resistance at 7000 and is currently retracing to test the new support level. Respect is likely and would signal a primary advance with a target of 7700.
The S&P 500 is further behind, headed for a test of resistance at 2800. Breakout would signal a primary advance with a target of 3000.
Bellwether transport stock Fedex is also recovering, having broken resistance at 256. A bullish sign for the broad economy. Expect a test of resistance at 274/275.