Russell 2000 is first to define a Dow Theory uptrend

The Russell 2000 Index became the first of the widely-watched broader market indexes to close above its April high, which puts in place the bullish technical pattern of higher peaks and higher troughs. The small cap tracker's close Tuesday at 1,154.79 was just above the April 27 four-month high of 1,154.15, while the May 19 closing low of 1,094.76 was above the April 7 low of 1,092.79. The century-old Dow Theory of market analysis says an uptrend is defined by a pattern in which each successive rally closes higher than the previous rally, and each pullback closes higher than the previous pullback, according to the Market Technicians Association. Meanwhile, the Dow Jones Industrial Average closed Tuesday 309 points below its April 20 high of 18,096.27; the S&P 500 closed 0.3% below its April 20 high of 2,102.40 and the Nasdaq Composite ended 0.2% below its April 18 high of 4,960.02. For Dow Theory enthusiasts, the Dow Jones Transportation Average ended Tuesday 3.8% below its April 20 high of 8,109.19.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.