After a solid setup yesterday, the Nasdaq and Nasdaq 100 broke higher today. Supporting the breakout was an increase in volume, marking confirmed accumulation. Technicals also remained aligned with bulls, staying net bullish.

Supporting the gain in the Nasdaq and Nasdaq 100 was the 1.6% jump in the Semiconductor Index. It looks to be completing its two month consolidation, and readying for its next move higher. The measured move target from this consolidation is 790.

The S&P is pressuring the 'Santa Rally' high of 2,093. The breakouts in the Nasdaq and Nasdaq 100 should provide positive feedback, enabling a fresh breakout in the S&P, although some pause at 2,100 can be expected.

Likewise, the Russell 2000 is setting itself for new highs, but unlike the S&P, a breakout here could kick start a new rally given its under-performance throughout 2014.

For Friday, keep an eye on the Russell 2000 and S&P. While breakouts in these indices are unlikely, it will be important to see price action hold tight to resistance. Bears best hope are 'bull traps' in the Nasdaq and Nasdaq 100, although it would take a larger sell off in the Semiconductor Index for such traps to stick. However, this seems unlikely given the 15 year under performance of this index, offset by its current renaissance from 2009 lows.