Sellers returned as the sequence of buy-sell-buy-sell continued. Action for the last four days continued to coil with the Russell 2000 showing this best with a series of inside days.  I would like to see this pattern break upwards and pressure 1,610s as it would maintain bullish confidence for Large Caps and Tech indices too.  The Russell 2000 still suffers from relative underperformance despite its recent improvement, but all other technicals are bullish, including a MACD trigger 'buy'.

An excellent end-of-week finish left markets well positioned heading into this week. The S&P finished with a new all-time high on light-ish volume. Gains weren't enough to reverse the MACD trigger 'sell' but other technicals are bullish.

Today's action - paired with yesterday's - has given bulls confidence more gains could be on the way. The losses were not significant and there was a great recovery breakout in the Russell 2000 'bull flag', which was feeling the pressure all through last week. Again, just as any losses were mitigated by the broader trading range, so was yesterday's gain. However, it does suggest there are buyers willing to come in if the water is nice.

Nothing spectacular from markets, but the risk of breakout failures eased with today's gains. Best of the action came from the Nasdaq as the risk of a potential 'bull trap' declined. I would like to see the MACD trigger 'sell' reverse to confirm the breakout, but I was happy not to see the 20-day MA undercut which would have just extended the prior consolidation and keep traders reluctant to get involved.