The follow through from Thursday's buying burned out after the first hour of Friday's trading and Friday closed back at Thursday's close. Where Thursday's action had set up for upside follow through, Friday's 'inverse hammer' is offering the reverse.  The question is how strong the respective buying and selling which created the spikes from Thursday and Friday are? Monday is likely to start with a test of Thursday's buying. What happens after the first half hour of trading will set the tone for the rest of the day. The S&P is trading below 20-day and 50-day MAs. Thursday's selling was greater than Friday's buying which is another tick in the bear column. Technicals are all negative. The only positive was the relative out performance of the index to the Russell 2000.

Today had the look of a decisive break down, but the last such breakdown from September's Brexit vote had a similar guise, but it failed to follow through. Volume climbed to register as another distribution day, the second (third for the S&P) such day since the last accumulation day. Tomorrow could be the decider, but it needs to break down right from the open - otherwise the agony will continue. The S&P is back showing net bearish technicals. However, the index continues to outperform the Russell 2000.

For a while on Friday it looked like Bears had the break through, but Bulls came back at the end to push indices back inside scrappy consolidations. If there is a concern for bulls it's that the S&P now finds itself bumping against the 50-day MA. Volume also climbed to register as distribution for the index. The one plus for bulls is that the index has started to out perform against Small Caps.

What was looking very good into the last couple of hours just ended up been good.  The weakness from yesterday was pushed aside and there is a buying opportunity for aggressive traders with a loss on yesterday's lows. The bullish lead was the Russell 2000. It was in the process of breaking from the 'bull flag', but ended the day back inside it. Technicals still hold to a MACD 'sell', with a weakening +DI/-DI and stochastic. However, price action is the best of the indices.