Sellers had managed to push indices back to support levels where buyers are looking to make a stand.   The S&P is down at the June swing low which is also the 50-day MA. Technicals are a mix of bullish and bearish signals; the index is still underperforming against Small Caps. Selling volume in recent weeks has sided heavily with bears but On-Balance-Volume hasn't yet switched to a 'sell' trigger.  This is as good as place as any to stage a bounce and take on a low risk trade. 

The week ended for markets with sellers in control. The damage was sufficient to put markets on warning for a bearish reversal - but the last such attempt in early June was quickly reversed by buyers; will this time be different? The Nasdaq lost its breakout with a drop below 10,000 and support of 9,800. Part of this move also undercut its 20-day MA. Volume rose in confirmed distribution in one of the heaviest trading days of the year not attributable to options expiration. An effective flat-lined MACD switched to a 'sell' trigger, so this is vulnerable to whipsaw as other technicals remain firmly bullish. 

The Nasdaq had been the lead index as it posted new all-time (post-Covid19) highs, but today's selling followed yesterday's bearish gravestone doji; collectively, it looks like a bearish evening star. The only thing remaining is breakout support, which has yet to be violated. Selling volume was down on yesterday's buying so it wasn't all in bears favor.

Traders had a weekend to stew over Friday's losses and a weak open on global markets could have set a more negative tone. However, this proved not to be the case.  The S&P staged a small rally from its 20-day MA. The rally hasn't yet undone the 'sell' trigger in the MACD but the sequence over the last five days has mapped a consolidation handle which has the potential to challenge and get past 3,200. 

Bulls weren't able to close out the week on a high as Friday's candlestick was a mix of a bearish engulfing pattern or black candlestick (lower close to open, but close above prior day's close). In the case of the Nasdaq, the gap closed but the 'bull trap' remains unchallenged.  The Nasdaq closed with a 'bearish' black candlestick on higher volume. The MACD trigger 'sell' remains but other technicals are positive. 

The S&P experienced a narrow loss as it traded inside yesterday's doji, which was within Thursday's gap down. The MACD is still on a 'sell' trigger but it returned to a relative advantage against the Russell 2000, which would suggest money flowing back to defensive issues - although trading volume was light.

Friday's defensive action was followed by Monday's buying, with many indices defending 20-day MA support. The profit taking from Thursday is still in the mix but the panic selling from February hasn't materialized. Indices finished with possible bullish engulfing patterns, but the lack of oversold conditions weakens the signal.  The S&P didn't reverse the 'sell' triggers in the MACD and ADX and left a new underperformance signal relative to the Russell 2000. 

Traders took stock on Thursday's sharp falls with some modest buying. Collectively, Thursday-Friday's paired action might be viewed as a bullish harami across indices, and therefore a swing low. But, I would like to see markets oversold for this to be a proper swing low and this is not the case for markets now.  The S&P fell back to its 20-day MA but is caught between support and resistance. Technicals are a mix of bullish and bearish indicators with 'sell' triggers in the MACD and trend measure, ADX (-DI > +DI). However, bullish is the accumulation trend in On-Balance-Volume and the relative outperformance against the Russell 2000 (although this is bearish for the broader market, at least it's bullish for safety conscious Blue Chip stock buyers). 

With some indices at resistance today's selling was not a surprise. Hardest hit by the selling was the Russell 2000, it lost over 2% as it reversed off the March swing high. Volume climbed in confirmed distribution, but aside from the relative strength loss against the Nasdaq, other technicals were positive. While the selling was heaviest in this index it didn't breacelletnt support. 

Today's gains were small but they were enough to see a breakout in the Nasdaq. Buying volume was down on yesterday's but heavier than usual.

Traders got the spin they wanted out of Friday's data  which offered the impetus for the breakouts in lead indices. It's hard to understand how markets could perceive things as out of the woods but yet here we are, and you play the hand you are dealt.  The pack leader is the Nasdaq as it closed on the February swing high - the next move will see it at all-time highs, following the lead of the Semiconductor Index. These gains have allowed the MACD to accelerate higher, taking it out of its flat line condition.  Other technicals are very positive even though there is a relative underperformance against the S&P. 

It was day which left lead markets poised for fresh breakouts as they finished on resistance or just above resistance (now support).  The S&P ended the day just below the February swing high (around 3,130) as volume climbed in resistance driven profit taking (and also ranked as distribution).  Technicals, aside from relative performance, are all bullish and show no signs of divergence; so the expectation would be for resistance to breach. 

Traders kept their blinkers on as Rome burned. There was very little reaction to the chaos across America, played on a backdrop to Covid19 and massive unemployment. Markets trade on the future, but this future feels a long way away in what was a blip of a trading day. The S&P edged a little higher as it made its way towards February gap resistance.