Sellers remorse after a weekend of retrospection might have accounted for some of today's buying, and while bullish haramis left in Indices might offer reversal opportunities, overhead supply at moving averages will likely prove problematic. The Russell 2000 ($IWM) dug in at $207.50 support, established in part by May swing highs. I'm nore sure it's a strong level, particularly as it played little defensive role during the test of the 200-day MA in August. Today's buying was low on volume and didn't change the net technical picture. From a trade perspective, a close (intraday violation okay) of $207 would see a move to the 200-day MA and likely lower.

If a precendent was set by Friday's undercut of the 200-day MA in Semiconductors, then it could be a rough few weeks ahead for indices. The loss of the 200-day MA after such a recent test was not surprising, but given technicals are net bearish and not oversold, then the likelihood of a further support loss of the 4,290 swing low has increased.

The index that had managed to break to new highs last week, the Dow Industrial Average, now finds itself pulling further away from its "Bull Trap" into a test of its 20-day MA. Selling volume was light, but there are new 'sell' triggers in the MACD and +DI/-DI to mark a shift in the August bullish trend. Given current momentum, a test of the 50-day MA looks likely.

So much for the bullish outlook as bears made their presence felt. The biggest loss was in the Semiconductor Index as it lost nearly 8% to close just above it 200-day MA. In addition, the latter index dropped below the stochastic mid-line, having struggled to return above the key divide between bullish and bearish markets.

A solid Friday for indices sets things up nicely for a post-Labor day weekend week. The S&P is the best positioned of the indices, gaining back the ground it lost in the middle part of last week, sitting just below the July swing high. Volume registered as accumulation and technicals are net positive.

I should open by saying as I was looking for some positivity premarket, but ultimately churned my daytrading account to my risk limit before the market opened. Either way, I would have likely lost on the day as markets spent most of it in bearish territory, with only the Dow Industrials Average ($INDU) salvging something into the close. Nividia's 5%+ loss in afterhours on its earnings release won't help the mood, but it could play as a bullish opportunity into tomorrow's open (but note the failed optimism in my trading today). The Dow Industrial Average ($INDU) did well to make back on its losses and it could follow through with upside tomorrow, although Nividia's results will likely keep a lid on things for a few days. Technicals are net positive and there is nothing bearish here.