It has become a little more difficult for Large Caps following Thursday's losses. The November channel breakouts have now failed for both the Dow and the S&P, with the next move likely to be a challenge of the November swing low/50-day MA in the S&P, and 50-day MA for the Dow. Short plays in these indices can use a close above the 20-day MA as a cover.
It was to be expected at some point after the holidays, volatility would increase. However, Tech averages had a relatively quiet day, although the semiconductor index had a wobble of its own.
For the S&P (and Dow), the increase in volatility left the index flat by the close. The index finished on former upper channel resistance-turned-support, with the 20-day MA also seeing a positive test. However, technicals weakened further with 'sell' triggers in On-Balance-Volume and +DI/-DI, with volume picking up to register a confirmed distribution day. Short term is set up for a bounce, but if this bounce doesn't reverse the technical 'sells', then a larger decline is likely. A close below the 20-day MA today or tomorrow would kill the short term bounce too I think, perhaps bringing in a larger test of the 50-day MA.
Finally put together my sector breadth analysis to include change over time (Looks to only work in Chrome - Timing Out in Explorer and Firefox - cross domain issue?). Google's bubble chart working very nicely and there are lots of customisation options, including tabbed histograms. Last 10-days with Bullishness, Sector Rank, Price Change and Price to choose from. You can also track the trails:
It was a case of selling for many of the indices, with the exception of the semiconductor index. The semiconductor index has been a long time underperformer, but today it held on to its breakout with a modest gain. Technicals are also in good shape. If there was a marker as to where to place your bets for a Christmas rally, Tech would look to be the place to be.