A mixed day for markets.   Oracles' weak earnings split indices with the tech heavy Nasdaq and Nasdaq 100 suffering, while Large and Small Cap indices were able to retain (and add to) yesterday's gains. The S&P was able to manage a small gain with a modest improvement in technicals; enough for 'buy' triggers in On-Balance-Volume, Directional Index and Stochastics. Declining resistance may be tested tomorrow. The best play for bulls on Thursday is probably the Russell 2000. This index is nestled against declining resistance from October; the slightest gain should be enough to drive a breakout. Technicals are comfortably net bullish and relative strength runs in its favor. An opportunity for buyers? The Nasdaq was on a hiding to nothing, but a late surge of buying took the index close to its open price, holding above 20-day and 50-day MA. There is probably too much overhead supply to offer a clean break - but a move above 2,616 would be a good start .

Although I missed yesterday's trading action, today's buying created a higher reaction low which keeps the basis of the Santa rally intact. Positive housing data was offered as a reason for the buying but this was the second day in three where markets enjoyed higher volume accumulation (well, the Dow was an exception - but not really!) The Dow is in the best shape of the indices. Today's buying took it from below 20-day, 50-day and 200-day MAs to above all three. A close above 12,250 will be enough to make new closing high for the October rally. The S&P hasn't quite enjoyed the same degree of buying as the Dow. While it regained the 20-day and 50-day MAs, it hasn't yet challenged its 200-day MA. Declining resistance connecting October, November and December highs hasn't yet been breached. And just above declining resistance is converged 1,260 and 200-day MA resistance. The Nasdaq has been consistently underperforming the S&P since the middle

Last week's action was a bit of a struggle on the daily frame, but taking it back to a weekly view hasn't changed a whole lot. In fact, next week could push lower without changing the picture a whole lot. The Russell 2000 tried again to break above 760, but ultimately it finished the week in the middle of its rising channel. The Dow finished just below 12,000 support, but there is additional support at 11,700 - plus 'bear flag' support. The Nasdaq is struggling a little below congestion between 2,600 and 2,885 established  in the latter part of 2010 and early 2011. The Nasdaq Summation Index finished the week with a 'bull trap' which suggests more downside for the parent Nasdaq to come. In addition, the Nasdaq Summation Index isn't oversold, so the decline could continue for a number of weeks. The NYSE Summation Index has already created and confirmed a 'bull trap' and it too has room to run before it becomes oversold. How

It could have been so much better after a bright start gave way to apathy and a disappointing close. There is a great deal of reluctance on the part of sidelined bulls to step in and bargain buy. In such an environment markets typically drift down in the absence of buyers, irrespective of active selling in the market. If sellers do pick up the pace it could be a whole lot down, although with indices near oversold territory it might just be a brief collapse. The S&P managed to rally to newly established resistance at converged 20-day and 50-day MAs, but had eased back by the close. Volume was down, which will offer some comfort to bulls (but probably not much). The November swing low continues to call... The Russell 2000 also managed to do just enough to take it to 20-day and 50-day MAs, but achieved little more. Stochastics switched to a 'sell' trigger as Thursday's finish left the index well positioned for a short attack. However, a strong push above the 20-da

Another day of selling stuck the bearish knife deeper into markets. Some markets fared worse than others; one of the hardest hit was the semiconductor index. The November breakout gap closed yesterday, but today the semiconductor pushed towards the November swing low. It was accompanied by expanding weakness in its technicals. Troubles in the semiconductor index continue to manifest in the Nasdaq and Nasdaq 100. There was no surprise to see the November breakaway gaps close for the Nasdaq and Nasdaq 100, with the Nasdaq doing so on heavier volume distribution. Technicals turned net negative following the MACD and Stochastic 'sell' triggers. Will both these indices continue lower as the semiconductor index has. The S&P lost support of its 50-day MA as a 'Death Cross' triggered between 20-day and 50-day MAs. To add to the misery, technicals turned net bearish with MACD and Stochastic 'sell' triggers. The Russell 2000 also saw a worrying break

While bulls saw the best of the action in premarket trading it was left to the Fed to finally kill any residual challenge on 200-day MAs. Any buyer using a stop on a loss of the 3-day low would have been knocked out in the last hour of trading. Adding to the trouble was a couple of breaks on supporting Moving Averages. Tech indices and the S&P also saw confirmed distribution - Santa has taken a hit to the chest. The S&P was able to cling on to 50-day MA support, although technical weakness expanded; there were 'sell' triggers in On-Balance-Volume and Directional Index, offset by the flight to safety of Large Caps over Small Caps. The Nasdaq had problems of its own with a bearish engulfing pattern, a break of the 50-day MA, and a 'Death Cross' between 20-day and 50-day MAs. This leaves the gap at 2,533 as the next target for the index. The Russell 2000 was caught in the middle. It has yet to experience a 'Death Cross' or break its 50-day MA, b

The struggle between bulls and bears continued Monday as Friday's buying was reversed, bringing indices back to the lows of last Thursday's selling. However, volume was lower, so there was no distribution and key moving averages held as support. While indices haven't broken above 200-day MAs they haven't turned away either; buying pressure on this key moving average is likely to lead to upside breaks across the indices as part of the 'Santa Rally' effect. The S&P held its 20-day MA despite a brief intraday violation. Relative strength swung away from Large Caps towards Small Caps; although whipsaw has been an issue in recent weeks. The Nasdaq dug in at the 50-day MA as it's about to lead against the S&P since early October. In the meantime the 'bull trap' marked by 2,616 remains. The Russell 2000 is also suffering with a 'bull trap' as today's finish held the 20-day MA. For Tuesday, bulls can play a long position

Markets had a bit of a roller coaster week on continued shenanigans in Europe, although the net effect was to see little change on the week. The Russell 2000 got close to 760 resistance as technicals improved. The index continues to trade inside the potential 'bear flag'. The Dow was able to push a little more given resistance is a couple hundred points away - namely declining resistance from the early 2011 swing highs.. The S&P also offers room to the upside. But... S&P market breadth exhibited a 'bull trap', which suggests lower prices! Despite the 'bull trap' in the NYSE Summation Index the rising price trend remains dominant for the S&P and others. Look for another week of gains until declining resistance created by April and July swing highs becomes more of an issue. ---- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . I offer a range of stock tradin

Markets finally succumbed to bearish pressure after days of resilience around 200-day MAs. This has created fresh 'bull traps' for some indices, a concern in the face of prior supply and a potential catalyst for larger declines in these indices. A decent rally would again negate these 'bull traps', but another down day would effectively confirm these areas as supply. The S&P is the index best positioned to recover from today's sell off.  Technicals are still positive and relative strength has swung in its favour ahead of Small Caps. The prior resistance level is still close enough to be considered support and the 20-day and 50-day MAs are just below to provide additional assistance. The Nasdaq closed below 2,616 support but finished on converged 20-day and 50-day MAs. Volume climbed to register a distribution day which was enough to generate a 'sell' trigger in On-Balance-Volume. Bulls have very little room for maneuver on the downside, but a 1% g

Morning action had suggested 200-day MAs had finally proven to be a step too far for the indices, but a late day recovery placed the pressure back on these key moving averages. Certainly, there is strong indication 200-day MAs will be broken to the upside. The S&P found support at the back test of declining resistance turned support. Volume climbed to register an accumulation day as the index also finished above 1,260 support. The Nasdaq is similarly poised, although there is a far greater level of tension between rising 50-day MA support and falling 200-day MA resistance; look for this to sharply resolve one way or the other - should be a good trade (likely to the upside). The Russell 2000 is the loosest of the indices in that it's neither near 200-day MA resistance or 50-day MA support. Therefore it may lag in response when the break finally comes in either the Nasdaq or S&P. For tomorrow, look to Futures with the S&P likely to lead the 200-day MA bre

There is very little to say about today that wasn't covered yesterday. Markets were unchanged - in fact, today's narrow range may be used to enter a trade on a break of the day's high/low with a stop on the flip side. The presence of 200-day MA resistance probably gives the edge to bears - but there are 'Buts' The S&P is a case of mixed emotion; 200-day MA resistance, but a bullish breakout from declining resistance. Technicals are bullish for lead indices And market breadth continues to improve So if 200-day MAs are broken to the upside it may offer grounds for another decent step up for this rally. -------- 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-Wo

While indices gave up some of their intraday day gains by the close of business, there was a more bullish turn in the technical picture of each. The S&P had the best of today's action. There was a break of declining resistance on modest volume, but it wasn't enough to break 1,260 resistance. The Nasdaq finished with a potential bearish 'shooting star' just below 200-day MA resistance. Volume climbed a little to register an accumulation day. Can tomorrow see the break of the 200-day MA? The Russell 2000 pushed inside prior trading of the 'bull traps', but unlike the S&P and Nasdaq, has room to go before getting to its 200-day MA. The semiconductor index finished a couple points below 381 resistance, but it too saw a net bullish turn in technicals. What this means for tomorrow is more difficult to decipher. Indices are positioned at resistance, be it 200-day MAs or a horizontal price point, so lower prices are favoured in the short te

Last week's stellar rallies redefined the boundaries of 'bear flags' on the weekly timeframe. This a mix of good and bad news. On the good news front, it leaves the indices well positioned to continue the gains of last week. The bad news is that it doesn't negate the broader bearish implications of the pattern; although some indices are better positioned than others to capitalize. The Russell 2000 is one index which has a number of key resistance areas to negotiate before it can move clear of trouble. The index managed a huge 10% gain on the week, but it closed below 760 resistance with a more significant level at 775; the neckline of the early year (bearish) head-and-shoulder pattern. Bulls need a decisive push above 775 to prevent shorts from building positions at these key resistance levels. The Dow is one of the better positioned indices. While it's still bound by the 'bear flag' it has pushed itself into early-year congestion, negating the head-a