It was a bit of a slow burn day. The S&P held its ground and its breakout without generating significant weakness. However, the Dow managed to post a new closing high although the percentage gain is low and volume was below average.

Large Caps and the S&P, in particular, has been leading the broader market with this week's breakout. Technicals are all net bullish as the index looks to mount a challenge of rising channel resistance, which is still some distance away. Current momentum suggests higher prices are favoured and it will take a loss of the channel and a failed retest of the prior high to suggest bears have regained control - so shorts will have to wait longer before they can act.

So with markets threatening support they instead gap higher and post further gains.  Today has probably done enough to see markets post new all-time highs while shorts are left with little to work with. The S&P gapped higher with technicals net bullish. Volume was a little disappointing (given the degree of gain) but all of this leaves markets ready for new highs.

The coiling setup from last week unwound itself with a move lower; whether markets have blinked and are ready for further losses or if this is just some 'bear trap' remains to be seen. The key test will be whether support from long established rising price channels will hold if such losses continue. The S&P only posted a small loss and some may consider Friday's action a shift in the coil position (use the 2-day high/low to define the trade and stop). However, the rising channel is very close and is in close proximity to the 20-day and 50-day MA.