While many traders have been trying to pick a bottom in oil, stocks have been moving higher and appear ready to give a technical buy signal.

Both PowerShares QQQ (NYSE: QQQ), an exchange-traded fund (ETF) that tracks the NASDAQ 100 index, and iShares Russell 2000 (NYSE: IWM), an ETF that tracks small cap stocks, closed within 1 percent of their 52-week highs on Thursday.

These ETFs, along with ETFs tracking other major indexes, have been in broad trading ranges for the past few weeks. A trading range develops when prices move back and forth without making a significant move up or down. Trading ranges are also called consolidation patterns by technical analysts. When prices break out of the range, technical analysts consider that to be the beginning of a new trend.

A breakout to new highs would be a bullish indicator for QQQ, IWM and a number of other ETFs. The strength of the tech stocks that make up the NASDAQ 100 and small caps in the Russell 2000 index is especially encouraging to bulls. When tech stocks are moving higher it is considered a sign that investors are aggressively buying stocks. Small caps are also a sign of aggressive buying.

As traders throw caution to the wind, look for repeated new highs in the coming months for the stock market.

When the buying stops, there could be a severe bear market. But for now investors should buy stocks and benefit from the uptrend that appears to be emerging in the most aggressive sectors of the market.