The Dow created a new trend channel for price to follow recently.  The bottom in the first week of February signaled a change of character as far as momentum is concerned. 

The end of Feb. the first of March price regained the 25 and 50 day MA's which signals a return of modest optimism.  As long as price continues to hold this channel we are still in an upmove.  If price breaks below this channel then we have turned bearish. 

As you can see from the chart we can still move a long way to the upside from here although at a slower pace than we had in 2009. 

The S&P 500 has had a slightly more robust rise recently than the Dow which indicates there is some strength in the broader market which should be a positive for the market as a whole going forward.  Doesn't mean we can't get hit with a correction it will come they always occur frequently when the are least expected. 

The three day chart we have posted gives a clearer indication of the trend channels in the Dow and S&P.

The Nasdaq has moved comfortably higher since our last index update which was our yearly end update. 

The highs made in January have been surpassed and the trend channel is currently being maintained.  The stochastics on the chart are trading in the overbought range and we can expect a pullback here soon.  Correction could be minor as the weekly stochastic is still rising but near overbought also.   

The Russell has  recently performed better than the otherindexes. It has not performed better than the Nasdaq since March 09 but has recently been a little stronger. 

Price has advanced past the trendline channel and appears ready for higher ground but also is overbought for the time being and probably needs to pull back a little consolidate and regroup.  I would be wary of being long the index until it retraces some first. 

The Russell and Nasdaq are closer to testing their 2007 highs than the Dow and S&P.    The Russell is approx. 24% from its o7 highs and the Nasdaq is approx. 16% below 07.   The Dow is approx. 31 % below 07 and the S&P is approx. 37 % below its 07 highs.