Daily Market Commentary: Consolidation Day 5

If you are a bull, the past week's action has been very kind.  Tight action, over an extended period, favors a big reaction move.  The resulting move should come in the direction of the prior trend, which in this case is bullish. New longs can look to place a stop below the 5-day low.  Aggressive players may wish to play a short on the break of the 5-day low as it would mark a 'fake out' of the bullish thesis (stops coming in above the 5-day high in this case).The S&P shows the bullish flag which 'should' break higher.  Technicals are bullish (with the exception of On-Balance-Volume, although this is likely to turn bullish on the next up day).Notice how the breakout gap in the Nasdaq hasn't been violated; another bullish sign.  The only ugly is down trending On-Balance-Volume.While the Russell 2000 is pressuring its high even within the tight consolidation. &...