The good work from yesterday was undone with today's selling.  The S&P posted a clear break of the 50-day MA on modest volume and will next be heading to test support of the declining channel - which at the moment looks more like a 'bull flag'.  Technicals for the index are net bearish, but are close to a recovery. It might look worrying, but the index could benefit in the long run.

It was a good day for indices as early weakness gave way to sustained buying into the close. There was early morning weakness to set the tone but it didn't last. The one index to rebuff this was the Russell 2000.  After yesterday's respectable finish the index went on to rally back to its 50-day MA. The gains in the Russell 2000 were enough to trigger a 'buy' in the relative performance against the Nasdaq and MACD trigger 'buy'. Momentum buyers won't join the fun until 1,393 is breached, so another 20 points of gains could be on the cards before supply becomes a problem.

There wasn't the reaction two days of narrow trading had presented into Monday's open, but the Russell 2000 made a good attempt at trying to rally.  However, it tagged the 50-day MA, then headed back to its starting point.  The only change on the day was the MACD trigger 'buy'.  With two spike highs in less than a week the next move to look for is a challenge on the 'bear trap'.

Very little to say about Friday's action; tight intraday spread on low volume was not going to send the world alight. The only index to post a modest gain was the Semiconductor Index. The Semiconductor Index rallied from a minor support level marked by the big-one day loss in March (with a low of 986), but the rally was made away from channel support and never challenged the 20-day MA.