Wednesday's gap created a significant reversal, stalling the mini-rallies kicked off in April. Thursday and Friday generated some come back against last week's loss, bringing many of the markets back to the highs of the gap down. The S&P is in a position where shorts may look to attack the gap. Friday's spike high put itself inside the gap, recovering the 50-day MA in the process. This gain was supported by a 'buy' trigger in On-Balance-Volume. While shorts might have the better risk:reward option, a move above 2,389 opens up for a retest of 2,405.

After days of steady gains, it was surprising to see the level of selling on show today; the last day like today in the markets was last December. How today plays out in the long term is still up for grabs as key trading ranges haven't been breached. Shorts will be watching for opportunities, but what followed last December was another kick start for the rally - bulls have a reason for optimism. The biggest reversal was in the Semiconductor Index. Yesterday's 1.5% gain was whipped by a 4.4% loss. The attempt to break out of the rising channel was snapped away, putting the breakout gap from last week under pressure.

It was generally a quiet day for the indices but the Semiconductor Index added another 1.5% as money continued to flow into Semiconductors. Today's gain leaves the index up against resistance and ready to breakout.

While not one of the primary indices, Semiconductors experienced a strong day of gains - backed by strong technicals. This index is well on its way to shaping a new rally for 2017, following through from the rally kicked off on Trump's election. Bulls have their index to follow for the summer.