Action in the Nasdaq was the most telling. The last couple of days have seen the index struggle to recover its 50-day MA, closing yesterday with the bearish 'black' candlestick common in reversals. Buyers did their best to defend the 17,033 swing low, but I'm not sure it will be enough. There is a gap around the 15,850 mark from May that will suck prices down to it, then there is the 200-day MA for long term support. Technicals are bearish, but not fully oversold, although On-Balance-Volume edged a new 'buy' trigger. However, I wouldn't be surprised if we saw a bullish 'hammer' or 'doji' that tagged *weekly* trend support intraday before bouncing.

Friday was a bit of a mixed bag. Buyers stepped in at the 50-day MA for the S&P, but they lacked conviction with light trading volume and a net bearish turn in technicals. The likelihood is for a return to downside for Monday, particularly if there is permarket drift below the closing price. However, there is a more of a positive picture in the S&P weekly chart. While it's no guarantee, the index did finish on a weekly support trendline dating back to end of 2023. So, even we see an early week break of support of this trendline, watch for a rally to return the index above this line by Friday.

A difficult day for the Semiconductor Index as it sheds nearly 6%, losing not just 50-day MA support, but also breakout support of 5,200. Technicals are net bearish, but not oversold on intermediate term stochastics.

Looking at weekly charts, the Nasdaq had finished with a bearish "evening star" candlestick reversal pattern and this is typically followed with further selling. However, while I would be looking for further weakness, we may see on Wednesday or Thursday a spike low that will deliver the aggressive reversal day traders like.

Monday will be decision time for the S&P as last week's selling tags breakout support, but also breaks a bullish trendline. The selling undercut the 20-day MA with a 'sell' trigger in the MACD. Signs point downward with money cycling away from Large Caps to Small Caps stocks but Monday is a chance for buyers to step in and defend support. After Wednesday's gap down, selling volume eased, which may be a sign of complacency or a genuine lack of interest in taking profits at this point.

It was a hard fall, but one day does not a bear market make. The Nasdaq took the biggest hit on the day breaching the bearish wedge, but on lighter volume. The index closed below the 20-day MA, but there is a chance for swing traders to trade a move back to 18,500 if we a see a bullish doji or hammer tomorrow by the close. There is a weak 'sell' trigger in the MACD.

I didn't expect the Russell 2000 ($IWM) to have it in itself after a strong finish to last week, but today is a positive start to this week as the index looks to shape a right-hand-side base. Technicals are net positive with what could turn out to be a relative outperformance against the S&P.