Steadying the ship

There wasn't a whole lot to today's action aside from reaffirming the consolidation action in lead indices. Trading volume returned to normal after Friday's Triple Witching.

For the S&P there was a bullish cross between the 50-day MA and 20-day MA as the narrow consolidation near resistance stretched into a second week.

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Triple Witching Skews Selling Volume

Friday's witching volume came with resistance selling, but the extent of the damage remains to be seen for most indices as range trading remains satisfied. Biggest damage was done to the Semiconductor Index as the challenge of the 'bull' trap failed, broadening range resistance to 1,625. It could be another few weeks before we talking breakout here.

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Markets Tease Follow Through But Are Not There Yet

It's looking ever more likely that current consolidations experienced by markets will resolve to the upside with new breakouts. However, markets are taking their time before doing so.

The S&P closed with a 'gravestone' doji just below 3,025 resistance. Typically, this is a bearish candlestick but given volume was significantly lighter then it's more likely to become part of a consolidation; one, which leads to an eventual breakout.

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Semiconductors Find Support

Another good day for Semiconductors after the attack on the 'bull trap' found support at breakout support; this will help the Nasdaq and Nasdaq 100. There was a 'sell' trigger in the CCI, but other technicals are bullish and relative performance is very strong. This is also bullish for the economy.

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