Looking at weekly charts, the Nasdaq had finished with a bearish "evening star" candlestick reversal pattern and this is typically followed with further selling. However, while I would be looking for further weakness, we may see on Wednesday or Thursday a spike low that will deliver the aggressive reversal day traders like.

Monday will be decision time for the S&P as last week's selling tags breakout support, but also breaks a bullish trendline. The selling undercut the 20-day MA with a 'sell' trigger in the MACD. Signs point downward with money cycling away from Large Caps to Small Caps stocks but Monday is a chance for buyers to step in and defend support. After Wednesday's gap down, selling volume eased, which may be a sign of complacency or a genuine lack of interest in taking profits at this point.

It was a hard fall, but one day does not a bear market make. The Nasdaq took the biggest hit on the day breaching the bearish wedge, but on lighter volume. The index closed below the 20-day MA, but there is a chance for swing traders to trade a move back to 18,500 if we a see a bullish doji or hammer tomorrow by the close. There is a weak 'sell' trigger in the MACD.

I didn't expect the Russell 2000 ($IWM) to have it in itself after a strong finish to last week, but today is a positive start to this week as the index looks to shape a right-hand-side base. Technicals are net positive with what could turn out to be a relative outperformance against the S&P.

The divergence between the Russell 2000 ($IWM), and the S&P and Nasdaq continues. Thursday's surge in the Russell 2000 on higher volume accumulation continued into Friday's premarket and open. However, buyers were unable to maintain their price momentum despite another day of strong buying volume. Having said that, there is plenty of room for buyers to find their foothold should sellers press late Friday selling pressure into Monday; $210 ($IWM) - the gap and prior high resistance-turned-support looks to be the area to watch.

If ever there was a case for two stories, then today was it. The Russell 2000 ($IWM) gapped higher with a gain over 3% as both the S&P and Nasdaq took a hit, the latter nearly shedding 2%. In the long run, this may be more bullish for the broader market, even if profit taking was the order of the day. The Russell 2000 ($IWM) didn't look back after the reaction to today's economic data. It surged, then surged some more. Technicals are net positive and relative performance has swung back in Small Caps favor. Volume also rose in confirmed accumulation.