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.
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.