Tough day at the office with sellers having all of the fun until the Fed meeting minutes jacked up prices, only for sellers to return into the close. For the S&P, each test of the 200-day MA weakens it, and we are probably getting close to the point we get a decent push down, and a move outside of the longstanding trading range which has plagued this market throughout 2015. Even a modest 10% correction off highs would set it to drop below psychological 2000. Should such a move occur it should be welcomed like refreshing rain on a muggy day. The market needs direction. The Nasdaq dropped below 5,038, but 4,950 is key support - which is also close to where the 200-day MA is.  Still plenty of places for buyers to step in, and this is not looking as vulnerable as the S&P. The key disappointment for Tech was the loss of support from what had looked to have been a bullish wedge in the Semiconductor Index.  Technicals are again all net negative. The Russell 2000 had

Not a day for big dramatics, but markets did well to hold on to Monday's gains. Selling volume was lighter than yesterday, so today wasn't seen as an opportunity to sell into strength.  The one index which was perhaps a little problematic for bulls was the Russell 2000. Here, the index lost nearly 1% as the 200-day MA stayed as resistance. This is he second time sellers have attacked this moving average. If bulls were to have a broader concern, then this index is the canary in the mine. Market leadership comes from Small Caps, and action in this index isn't great. Bulls may look to the weak MACD 'buy' as a sign of something better, but 1,189 will need to hold as support.

The larger picture still holds to trading ranges, but the coiling action in the S&P suggests an upside breakout is in the making. It qualified on the basis of price, but volume was disappointing. Bulls will be happy, but tomorrow needs volume buying to suggest this breakout is genuine.

Markets staged a recovery after bears were unsuccessful in pushing follow through selling after a break of intraday support in morning trading. However, markets are approaching a decision point where declining resistance on the daily converges with rising support. The S&P offers the classic coiling play. Add to this the presence of the 20-day and 50-day MAs within the coil, with the 200-day MA just below, suggests the next break could set the tone into September. Technicals are mixed with momentum at bullish support, but 'sell' triggers in the MACD, On-Balance-Volume and +DI/-DI.