Last week, the number of 52-week Highs / Lows in the Nasdaq and NYSE flashed a new peak and reversed by weeks end. The peak in the NYSE New Highs / Lows was more prominent than the Nasdaq, although the last peak didn't result in a consolidation/decline. However, the chances are high that this peak will lead to a consolidation/decline, and this will remain in play until the next swing low (peak in 52-week Lows). Taking Profits should be the focus until the worst of the decline plays out.
Today's losses were small, but enough to leave a 'Bull Trap' in the S&P. It was the only real action of note on the day. Lower volume kept this from being a distribution day.
The S&P came close to a test of the 20-day MA with a pending bear cross in the MACD and On-Balance-Volume. There was also a relative shift against the Russell 2000, which is better news for bulls as defense of Small Caps outweighed that of Large Caps.
It has taken over a month for sellers to mount a high volume challenge, but today was one such day. In terms of total volume, it was one of the worst days for 2013. And in the context of the rally, it offers a sign for a potential swing high, but doesn't break the larger bullish trend - it will take much more selling to do that.
The Nasdaq did lose the tightly ascending support line established from the April swing low. A move to the 20-day MA looks most likely.
The mini-rally started in mid-April continued to rule the roost. Today's low volume losses continued with the trend which has supported the rally: namely high volume gains, and low volume losses.
The S&P sits 12% above its 200-day MA, which is unusually high. Although the S&P has managed to rally to 20% above its 200-day MA; typically this is done after a major low, and not at the latter stages of an advance. Neither action in the indices or supporting technicals suggest this rally is about to end soon.