Just a quick post to keep things going. Comprehensive loss of 50-day MAs in S&P, Russell 2000, Nasdaq, Nasdaq 100 and Semiconductor index. Only the Dow escaped. Potential break of the neckline in the Russell 2000. Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard . The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements. Zignals offers a full suite of FREE financial services including price and fundamental stock alerts , stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager , active s...

For the few days after I left on vacation it looked like bulls were going to undo the 'bull traps' which popped up across the different indices, but it was not to be. The Russell 2000 was picture perfect in the bearish turn, failing to challenge reinstated resistance at 855, leaving what may be a bearish head-and-shoulder pattern; the 820 level critical in this regard. Tomorrow may yet see this break (it did so intraday today, but closed just above). The clean slice of the 50-day MA is a bad omen for other indices which managed to cling on today. Technicals are all bearish and momentum hasn't reached oversold levels (on an intermediate time frame, although has on the short term). Ugly... ($RUT) via StockCharts.com Torrid action in Small Caps undid what looked to be a solid defense of the 50-day MA and breakout support in the Dow. Volume climbed to register a distribution day, but there may be enough to see a longside play tomorrow. ($INDU) via StockCharts.com The S...

On vacation and when I return it will be a move into a new place (setting up internet can take a while). Always something seems to happen when I'm away so no doubt the market will decide to continue downwards... There is a bull trap in the S&P ($SPX) via StockCharts.com Nasdaq ($COMPQ) via StockCharts.com But the Russell 2000 held its 50-day MA ($RUT) via StockCharts.com As did the semiconductor index ($SOX) via StockCharts.com Can the semiconductors and Small Caps advance their cause? Or will the newly tapped bull traps in the Nasdaq and S&P take indices lower? I prefer the former scenario over the latter in the short term - but bull traps are hard to reverse.

Indices managed to recover some of their losses by the close, but the real damage was done to more speculative Small Caps. This is not good news for those looking for a continuation of the long standing (Mar 2009) bull market. With money channeled to less speculative Large Cap stocks, it marks an end phase for the rally. Starting with the S&P, the index was able to hold 1,343 support with the 20-day MA rising to lend additional support. A bounce 'buy'? Today's buying opportunities (SOX and Russell 2000) proved to be a risky - and losing - ride for those who took the option to buy the open. There is every opportunity for the S&P to disappoint. Set a stop below Wednesday's low. ($SPX) via StockCharts.com The Nasdaq made it down to its 20-day MA before it recovered some of the losses. Some may consider the break of 2,836 done and dusted (it finished at 2,828), but there was enough buying in the afternoon to suggest it may follow through (higher) tomorrow. (...

An odd day for the markets. First there was the confirmed 'bull trap' in the Russell 2000. Today's losses brought the index further below reformed resistance, but back to its 20-day MA. While at its 20-day MA it offers a long-side opportunity, but with old resistance at 855 it might be a short lived one. ($RUT) via StockCharts.com The semiconductor index suffered a second significant day of selling to take it back to converged 20-day and 50-day MAs. Ironically, converged 20-day and 50-day MAs are on the verge of a bullish 'Golden Cross'. However, this may offer the leverage for a long-side opportunity. ($SOX) via StockCharts.com Meanwhile the Nasdaq did enough to recover the intraday losses to finish above 2,836 support. Will this help the semiconductor index tomorrow? ($COMPQ) via StockCharts.com The Nasdaq 100 also took losses which saw a break of the 4-day congestion. However, it recovered to finish on breakout support. It still could go either way,...

A quick reversal of fortune after markets take a stumble, some worse than others. The Russell 2000 suffered the brunt of the selling. The index closed just below 855 support, enough to suggest a potential bull trap. The selling also triggered a CCI 'sell'. Another day's losses will confirm, but consider today's action a warning sign. ($RUT) via StockCharts.com Next was the bearish engulfing pattern in the Nasdaq. Technicals remain buoyant and selling volume was light, but it was a significant 1-day shift. ($COMPQ) via StockCharts.com The S&P was not so adversely impacted by the selling, although it failed to hold on to early gains. There is room to maneuver to support and selling volume light. ($SPX) via StockCharts.com The Dow, having extended well beyond nearest support, closed with an indecisive doji. Trading a break of Monday's high/low may offer a short-term opportunity. ($INDU) via StockCharts.com A stronger trading opportunity may be ava...

It was a good week for the indices. The Nasdaq managed to negate an earlier bull trap and broke to a new multi-year high on higher volume. Nasdaq via StockCharts.com The Nasdaq 100 even managed a mini breakout from a consolidation, a consolidation built after it made new multi-year highs in 2010. ($NDX) via StockCharts.com While the Percentage of Nasdaq stocks above the 50-day MA is caught in at a middling 63% (having climbed from a reaction low of 30%), it did trigger a MACD 'buy'. ($NAA50R) via StockCharts.com The Russell 2000 enjoyed the dual benefit of a breakout and a MACD 'buy' on the weekly. ($RUT) via StockCharts.com Even the S&P managed a breakout, but it still has some way until it gets past 2007 high. ($SPX) via StockCharts.com With the breakouts in play on the weekly timeframes it's now a question of them holding on. Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com ...