Tuesday's action marked the failure for the first challenge of the April swing high; volume climbed to register as distribution as profit takers struck the market in force. Today saw some stabilization of these losses, but buying volume was down on recent selling, so it remains to be seen if this is the making of something more substantial. The S&P is lingering around its 20-day MA. Today's buying ranked as a bullish piercing pattern but the strength of this candlestick requires an oversold condition, which is not the case here.There is also the MACD trigger 'sell' to consider, although other technicals are bullish.

Market action remained somewhat low key with only the Nasdaq trading any action of note. The Nasdaq is fast approaching  next resistance level of the February(!) breakdown gap - this will probably the last point of attack for shorts as going beyond this will fill (and therefore, negate) the breakdown gap. Trading volume for the index was well down on yesterday. 

Do we have a resolution to the trading range with the Nasdaq now posting a new swing high for the March rally? Must be the 20 million job losses was considered better than the 22 million expected :(  Hard to fathom why the gains, but its during times of doubt when substantial money remains on the sidelines that a gradual return to the market can fuel these rallies. Remember, trading volume from the middle of March to the end of that month was substantial and anyone who bought during that period will be sitting on profit and not likely keen to take profits - keeping supply tight.  Just to add to Friday's breakout in the Nasdaq, volume climbed to mark accumulation. 

Indices had looked ready to break beyond last week's swing highs, but in the end they weren't able to push through but the damage was minimal.  The S&P had a small bearish engulfing pattern to yesterday's doji. On a positive front, yesterday's action closed the breakdown gap even if it ultimately wasn't able to challenge the 'bull trap'.