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Rejection of All-Time Highs

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It was not surprising to see the challenge of all-time highs rebuffed in the Nasdaq and Russell 2000. These were the indices most likely to see the benefit of buying strength, and both started off well. However, as the day wore on, bears were able to squeeze bulls out of their positions. Both of these key indices closed at lows. The Nasdaq finished with an inverse hammer as it attempted to challenge the 'bull trap'. Volume climbed from Friday to register distribution, although it wasn't particularly high volume overall. Tomorrow may see some follow through down, but there is plenty of support to work with, starting with 20-day and 50-day MAs.

Buying Strength Builds Pressure on All-TIme Highs

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A solid Friday to close the week helped push indices towards a challenge of 2015 highs. Volume climbed to register strong accumulation for the Dow and S&P, although things were quieter for the Nasdaq and Nasdaq 100. The Russell 2000 sits just 4 points shy of a new all-time high. Last week's action offered step-by-step advance towards breaking the 'bull trap' at 1268. There is a good chance this high will be posted by Monday's close.

S&P Confirms Consolidation Breakout

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Markets are still bound by the larger range from March, but there was a consolidation breakout on offer from the S&P. It still has overhead supply to work with, but today's buying registered as accumulation. The S&P enjoyed a MACD and Stochastic 'buy' along with today's action. However, On-Balance-Volume still has to trigger a 'buy' signal to turn all technicals net bullish.

Tech and Small Caps had best of action

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I started the day with a short in the Nasdaq 100, and ended the day stopped out. Large Caps didn't quite reach the same highs, but will likely follow the leadership of the Nasdaq and Small Caps. The Russell 2000 will likely lead the indices out. It's very close to negating the 'bull trap'. Tomorrow could be the day.

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