The charts below show and explain my thinking... But in short we need these two indexes to be strong if we want to see another major leg higher in the SPY, or to at least test the recent highs.
Today the market opened slightly higher and pushed up in the first 30 minutes with strong volume. Overall the market looks as though it needs a day pause/pullback before taking another run higher.
Small cap stocks are the ULTIMATE Risk On play and generate ridiculous gains in very short periods of time.