The day had the potential to be a real stinker, but in the end it was Tech which took the brunt of the selling. First up, the semiconductor index pulled further away from its 200-day MA as a pending 'Golden Cross' between 20-day and 50-day MA fast approaches. Technicals took a hit with a 'sell' trigger in the CCI. ($SOX) via StockCharts.com The Nasdaq gapped down to 2,344 support. The 20-day MA is fast approaching and is likely to a test tomorrow or Wednesday. There was a 'sell' trigger for on-balance-volume. via StockCharts.com The S&P didn't take as big a hit, but did manage a test of its 20-day MA. Technicals had already weakened with last week's 'sell' for on-balance-volume - the MACD is likely to follow suit tomorrow. ($SPX) via StockCharts.com So far, none of the (Nasdaq) breadth indicators suggest a top is in place. Instead, most point towards further gains. ($NASI) via StockCharts.com So while the easy option is to

Will October offer bears the seasonal weakness they crave (need!). Anthony D Allyn of Elliotwavehound.com offers a bearish prognosis. Market Outlook for Monday Oct 4st: 5th bearish candle in a row~! All indicators point to a Black Oct. The smart money has already sold and gone short, while market sentiment hits recent highs. The easy money is finally about to be made on the short side, and no amount of manipulation can prevent it. The media campaign... to change investor sentiment has failed miserably. Looks like September support has gone. The intermediate picture favours a move to - rising - channel support Bearish candlesticks illustrated for the Dow. However, the Dow Jones Oil and Gas Index looks to have defied its bearish picture with a clear breakout. Richard Lehman of Channelist.com is also watching for topping action. 10/3 -- Oil and gold riunning as the dollar declines, but equities now showing signs of topping out. Watch the short term charts for breaking

Last week's breakouts held in a mixed week for the markets. The prior week's breakout in the S&P was followed by one of low volume on strengthening technicals. ($SPX) via StockCharts.com It was the same story for the Nasdaq; low volume losses on strengthening technicals. AAAA Nasdaq via StockCharts.com But for the Nasdaq Bullish Percents there was a confirmed 'buy' as the W-bottom completed. However, just as this summer's trading mimicked that of 2007, will action for the end of the this year match that of the start of 2008? There is a case for a mammoth bull trap, but even if true it doesn't mean the market will reverse immediately. Breadth is likely to rally to 60%+ before things start to get worrisome for bulls. ($BPCOMPQ) via StockCharts.com However, the Percentage of Nasdaq stocks above 50-day MA is up against declining resistance which has repelled all advances since the start of 2009; it could so again? ($NAA50R) via StockCharts.com Fi

Thursday opened with the market unwinding higher, but it wasn't long before the gains were clawed back - and then some. It was commendable bulls didn't run and hide, although it's going to be harder for them to push higher given the morning's events. With bears spoiling, now could be the time we start seeing tests of 20-day MAs. The S&P is holding above the rising channel line (former resistance). But there was an on-balance-volume 'sell' as technicals started to weaken. ($SPX) via StockCharts.com The Nasdaq closed with a bearish engulfing pattern, which is not hard to understand given yesterday's narrow range day. Strengthening the bearish factor is overbought stochastics. Look for a lower close Friday. ($COMPQ) via StockCharts.com The Russell 2000 closed just above trading range support. It's not as bearish as other indices but will likely suffer if others do. ($RUT) via StockCharts.com The Dow completed a picture perfect touch of ris

While Large Caps and Techs (other than semis) had a quiet day it was again up to the Russell 2000 and Semiconductors to do the leg work. The Russell 2000 added a little distance to yesterday's breakout. Less than 0.5% added but it was enough to give the breakout more respectability. ($RUT) via StockCharts.com Better still was the push above the 200-day MA for the Semiconductor index. Somewhat surprised it didn't bring more dividends for the Nasdaq or Nasdaq 100. ($SOX) via StockCharts.com It's still looking good for bulls despite the quiet day. Watch for follow through upside in the Nasdaq and Nasdaq 100 following today's gains in the semiconductor index. Follow Me on Twitter Build a Trading Strategy Business in Zignals Subscribe to one of 58 trading strategies covering US, UK, Canada, Forex, ETFs, Frankfurt, Australia or Irish Markets Dr. Declan Fallon, Senior Market Technician for Zignals.com , offers a range of stock trading strategies for global

It would have been easy for markets to push lower after Tuesday's weak start to the day, but it was commendable to see bulls push back and finish the day with yet another (modest) accumulation day. For the S&P the 3-day low of 1,132 is looking a good place for a stop as its nicely positioned to add another couple of percentage points. Technicals and volume patterns remain in the bulls favour. ($SPX) via StockCharts.com The Nasdaq is defending 2,344 support on good volume. Since technicals turned net bullish there have been six accumulation days to two distribution days; bulls keep the edge. ($COMPQ) via StockCharts.com The Russell 2000 inched out of its trading range and enjoyed a relative shift to reassume its position as market leader. May reaction highs next target ($RUT) via StockCharts.com Semiconductors may have had the best of the day as they closed just under their 200-day MA. I suspect Wednesday will see some consolidation around this key moving average.

Not exactly the doom and gloom it might have been, but it will still register as a down day for the markets. However, markets still have room to run to resistance and recent volume trends have favored buyers - even if overall volume has been very light. The Dow has channel resistance in its sights. ($INDU) via StockCharts.com While the S&P maintains its breakout while been some distance from next resistance. ($SPX) via StockCharts.com The Russell 2000 looks poised to break 672 resistance ($RUT) via StockCharts.com One index which has traded good volume and enjoyed golden crosses between 20-day x 50-day and 50-day and 200-day MAs is the Nasdaq 100. It also has plenty of room to support. ($NDX) via StockCharts.com While the semiconductor index has put the threatened bull trap to rest. There should be enough to make it back to 377, but the 200-day MA is first up as a challenge. ($SOX) via StockCharts.com The August rally is looking rich, especially for indices like