NEW YORK (TheStreet) -- The stock indexes closed mixed on Thursday after being down most of the trading day.

The DJIA was down 19.71 points to close at 17049 while the S&P 500 closed higher by 1.76 at 1997.45. The Nasdaq was higher by 5.28 to finish at 4591.80 and the Russell 2000 was up 7.36 to close at 1172.34.

The S&P 500 Trust Series ETF (SPY) - Get Report volume finished about the same as Wednesday at over 66 million share traded.

The S&P 500 daily trading range of 1981-2001, according to my internal process, was again very precise. The S&P low on Thursday was 1985.93 and the high was 1997.65. So we close at the high end of the trading range, which is the sell trade. 

The S&P is still in a "Trade Bullish/Trend Bullish" condition.

I expect Friday trading volume to be on the light side again and I am positioned for more upside over the next few days. The reason is very simple. I have many more small- and large-cap stocks on my oversold scan versus stocks that are overbought. This is the complete opposite from last week.

Do not misunderstand me, the stock market has some huge risks at these levels. I continue to be very cautious and opportunistic in our trading. Again, the Russell 2000 is trading at 50 times trailing earnings and the market cap of the major momentum stocks is massive. Traders need to be on alert. We are trading within a bubble.

On Thursday, I sold my Ampio Pharmaceuticals (AMPE) - Get Report for a huge gain on this small-cap stock and bought and sold Yamana Gold (AUY) - Get Report intraday, a large-cap gold stock that is oversold. I added a new long position in Invensense Inc (INVN) .

At the time of publication, the author was long AUY, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.