NEW YORK (TheStreet) -- As anticipated, the stock indexes traded higher on Thursday after signaling an extreme oversold condition and trading near the low end of their respective risk ranges on Wednesday.

The DJIA gained 259.83 points to close at 17,895.22 while the S&P 500 gained 25.71 to finish at 2,065.95. The Nasdaq gained 43.34 to close at 4,893.29 and the Russell 2000 was higher by 20.86 points to close at 1,236.64.

The Russell 2000 is now within three points of a new all-time high. There's a very good reason for the Russell 2000 trading near the highs.

Most of the earnings from the stocks that make up the Russell 2000 index are derived domestically. These companies have minimal international exposure. With the strong dollar, most Russell 2000 stocks have no currency issues from abroad, unlike the large cap stocks with major international exposure to currency risk.

Intel  (INTC - Get Report), for instance, was just the latest large cap company to warn of an upcoming revenue shortfall in part attributed to the strong dollar.

Once again, an up day in the stock market has led to a down volume day. The S&P 500 Trust Series ETF (SPY - Get Report) traded just over 91 million shares on Thursday. Traders need to be very cautious of up days with low volume. 

Apple (AAPL - Get Report), and Pepsico (PEP - Get Report) were two stocks that performed very well to the upside on Thursday, each gaining nearly 2% from an oversold signal.

Stocks that have a current oversold signal and should move higher over the next couple days are Wynn Resorts (WYNN - Get Report) and Marathon Oil (MRO - Get Report).

 

This article is commentary by an independent contributor. At the time of publication, the author held WYNN.