Small Caps closed over 50day moving average...whats next?

As posted late in the day yesterday, small caps were on the cusp of closing over their respective 50day moving average...and by the close it was successful. IWM closed $81.74 with the 50day moving average just below at $81.60. So now all 3 major US indices (or ETF equivalents) are over their respective 50day moving averages. This event will likely lead to a more "risk-on" environment now that small caps have joined the fray.

The next big test will be if the leaders in Europe, especially the DAX, can recover over their 50day moving averages. As illustrated by the DAX chart below taken after the close yesterday, this index still has some work to do but as mentioned here before, watch the DAX for clues to what will be happening in the US equity market. Now that the US has recovered nicely, if the DAX can also recover and negate its short term negative bias then it will be a full-on risk environment and an across the board buy-the-dip mentality will probably be the way to trade.