Equities closed higher for a third consecutive day but on light trade. The small-cap Russell 2000 matched Thursday's performance, as it once again tacked on 1.3%. The S&P MidCap 400 posted a solid 0.9% gain, while the Nasdaq added 0.6%. Big cap stocks lagged on the day, as the S&P 500 and Dow Jones Industrial Average could only muster small 0.4% and 0.1% advances, respectively. Only a few sectors finished in the red on the day including, non-ferrous metals, railroads and internet services. Winners included the homebuilder, communications and transportation sectors.

Internals ended mixed for a second consecutive day. Turnover ended fractionally lower on the Nasdaq but 1.5% lower on the Big Board. However, advancing volume outperformed declining volume by a ratio of 2.5 to 1 on the NYSE and 2.1 to 1 on the Nasdaq. Friday's light volume points to a lack of institutional participation on the day.

Since setting a new swing high on March 5th, the Market Vectors Vietnam ETF (VNM) has pulled back and been consolidating at its 10-day EMA. We often look to the 10-day MA as a key support level when an ETF is in a strong uptrend. A volume assisted move back above the four day high of $20.21 could present a buying opportunity in this ETF.



Since January 13th of this year, the ProShares UltraShort Eruo (EUO) has been in a distinct downtrend. However, over the past four sessions, EUO has Rallied and closed above the downtrend line on two separate occasions. The next resistance level for EUO is near $20.00. If EUO can rally back up to and consolidate near this key mark, it could become a long candidate. We are monitoring EUO carefully for a possible entry.

 

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.