There was a pick up to Friday's selling, but while the one-day loss approached 2% for the Nasdaq and S&P it wasn't accompanied with the kind of volume such selling can typically scare up.  The concern is that last week's peak for the Nasdaq morphs into a double top, but for this to be true there would need to be an undercut of the September swing low - and that could take well into November. Until then, we are looking at a sideways consolidation. 

This week saw markets challenge September's highs, beginning a process of base formation across indices. Volume fell across the week, fitting with a consolidation and not active selling. This action is bullish for indices - only if selling continues on a pick up of volume should one become concerned.  While Nasdaq selling volume fell over the course of the week, but with four consecutive days of selling the index is close to a 'sell' trigger in On-Balance-Volume. The index is still underperforming relative to the Russell 2000. 

We started to see a little easing as indices approach September highs. Ideally, we would like to see some sideways action or 'handle' to consolidate gains from the reactive rally off September lows, so if things go quiet here I wouldn't be too concerned.   For the Nasdaq, selling volume eased in contrast to yesterday's higher volume accumulation. Technicals are all net positive, including an uptick in relative performance against Small Caps.  Tech stocks are looking to regain their mojo, which is good news for Tech stock holders looking for new all-time highs.

Base development continued across the board as all lead indices posted gains. The biggest gain came with the Nasdaq as it moved ever closer to its last swing high in September. Technicals for this index are all bullish, with the index making relative gain inroads versus Small Caps.