Friday's selling confirmed the second shorting opportunity with support breakdowns across lead indices. The S&P closed with higher volume distribution on a breakdown of rising support. Relative performance remains weak although there are still 'buy' triggers for MACD and On-Balance-Volume.

The first chance for a short play got burned but there is a second one on offer for the S&P. The S&P tagged channel resistance and while today's reversal off resistance didn't amount to a big percentage loss it did register as a distribution day. There wasn't any significant technical change so if this short does evolve it will do so with risk measured on a move above 2,717.

Well, that didn't last long. The shorting opportunities which offered themselves yesterday didn't last the morning; morning gaps held beyond the first half-hour of trading and bar a small sell-off into the close markets finished higher and above key moving averages and trading channels. The Dow created a breakout which now offers a potential long play. Stops go on a loss of 24,600. Technicals finished with a new long 'buy' trigger in Stochastics.

The indices are edging higher but the presence of 50-day MAs and/or channel resistance overhead does offer an opportunity for shorts to take a position. Market action does appear to be favouring bearish wedges with prices moving towards an apex on declining volume. The current apathy will break and how it does will define the direction of the next market phase. Today's action in the S&P left the index pinned to its 50-day MA. The tight intraday range offers a low-risk short play with a stop above the 50-day MA and an entry on the break of the ascending support line