When the breakouts in the Russell 2000 ($IWM) and equal-weighted S&P ($SPXEW) remain under breakout support (again resistance) I would expect selling to expand and the breakouts to quickly dissipate, but this hasn't quite happened yet. However, buyers will need to make a stand before the year is out so when real trading resumes in the New Year, bulls will have something to work with. The Russell 2000 ($IWM) remains stuck below $250, and today's 'black' candlestick is not one to suggest bulls will have it easy tomorrow. A weak 'sell' trigger in the MACD doesn't help, but in itself is not too damaging.

It was coming, but only because markets have performed strongly since November lows. We have seen breakouts in the Russell 2000 ($IWM) and equal-weighted S&P, but both have drifted below their breakout levels. It wouldn't take much to recover these loses, but buyers still have some heavy lifting to do. The Russell 2000 ($IWM) closed with an indecisive doji after two days of selling, but I would consider an indecisive doji at breakout support more bullish. Technicals are nest positive, but On-Balance-Volume is close to a 'sell' trigger. However, the index is enjoying relative outperformance.

Friday's losses gave back some of the early week gains, but losses weren't enough to derail the bullishness on the week. The strongest index was the Russell 2000 ($IWM). It started last week pressuring $252 resistance, managed to break mid-week, but got caught up in the Friday sell-off in Semiconductors. Technicals are net bullish with momentum in overbought territory - a key driver for breakouts, and Friday's loss didn't weaken that. For Monday, watch for a spike low below $252, where anything sub-$250 might be an opportunity to grab a long position for an upcoming Santa rally.

Indices are making their way higher, with the Dow Jones Industrial Average making a clean break of resistance on modest volume. The heavy volume gains came yesterday for this index with technicals net bullish. The Dow breakout looks good, but the weekly chart points to resistance. The index could run steadily higher along this resistance line, but a breakout would accelerate the advance.