Equities posted modest gains on Friday on mixed trade. The small-cap Russell 2000 showed the most relative strength on the day, as it posted a 0.9% gain. The Nasdaq added 0.6%, while the S&P MIdCap 400 rose 0.4%. Both the S&P 500 and the Dow Jones Industrial Average added 0.2%.

For a second consecutive day, internals were mixed. Volume increased 0.6% on the Nasdaq but fell 3.2% on the NYSE. Advancing volume was higher across the board, as the spread ratio ended at a plus 1.4 to 1 on the NYSE and a plus 1.2 to 1 on the Nasdaq. Albeit modest, the Nasdaq posted a second consecutive accumulation day on Friday.

Since losing support of its 200-day MA on April 4th, the Vanguard MSCI Europe ETF (NYSEARCA:VGK) has rallied back into resistance of its 50-day MA. If VGK overcuts and forms a reversal candle at this key mark, it could present a short selling opportunity. We will be closely monitoring the price action in VGK for a possible short entry:

We opened a new long position on Friday, as VNM hit its buy trigger. Our open position in EPU moved above resistance of the three-day high but pulled back at resistance of its recent swing high formed on April 19th. A move above $46.50 could very well result in a sizeable move higher for EPU. Currently, both open positions are international ETFs, which provide the benefit of having a lower correlation to the direction of the U.S. stock market indexes than typical industry sector ETFs. Overall, last Friday’s market activity was uninspiring, but could be expected following a three-day rally off the recent lows. We would also not be surprised to see a pullback today (Monday) and will be monitoring the severity of any potential selling activity as an indication of market strength.

NYSE:VGK