Similar to the previous two days, stocks gapped higher on the open, pulled back in the morning, then chopped around in a sideways to slightly higher range throughout the rest of the day. Divergence among the major indices was noted, as the Nasdaq Composite gained 0.8%, but the Dow Jones Industrial Average showed relative weakness by finishing unchanged. The S&P 500 edged 0.2% higher. The small-cap Russell 2000 continued its newfound display of relative strength by cruising 1.2% higher and closing at a fresh 52-week high. The S&P Midcap 400 rose 0.7%.

As expected, volume limped in below the previous day's levels, marking the stock market's third consecutive day of gains on declining volume. Total volume in the NYSE eased 16%, while volume in the Nasdaq was 8% softer. Although several sectors have scored decent gains this week, the string of decreasingly lighter volume advances into a very long holiday weekend means intraday trading has been the safest bet.

The stock market's open until 1:00 pm EST today, but turnover will likely be proportionately the lightest volume day of the year. In our humble opinion, there's no need to think about entering new trades today, ahead of a three and a half day trading hiatus. You're not likely to miss much. Set your stops for existing positions on the open, and make it a relaxing four-day weekend instead.

Open ETF positions:

Long - SMH
Short (including inversely correlated "short ETFs") - EEV, FAZ

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.