Broad selling saw markets reach down to their 20-day/50-day MAs. Bulls will have their opportunity to defend tomorrow, but there is reason to suggest it might not be enough. Hardest hit on the day was the semiconductor index. Tuesday's losses effectively confirmed the bull trap, made worse by the fact it failed to close above its 50-day MA when it tested it last week. Technicals remain very weak, with only the MACD clinging on to a weak 'buy' signal. ($SOX) via StockCharts.com The Nasdaq 100 finished on its 20-day MA with an indecisive doji on higher volume distribution. Selling volume was enough to produce a 'sell' trigger in on-balance-volume, another tick to the bear side. The thing which will most give comfort to bears is the failure of the index to challenge and close the February breakdown gap. ($NDX) via StockCharts.com The Dow is mapping a potential double top with a picture perfect refusal at resistance. Higher volume sides with bears. ($INDU) v

The loss in quality of stock breakouts combined with the slow rollover in markets has left the broader rally vulnerable to a more substantial decline. However, there is still the issue of 20-day and 50-day MAs as support. So buyers have a logical place to step in and defend. The Russell 2000 closed below 836 and triggered a 'sell' in the CCI. This is a worrying development as it has been the key driver of the rally in recent weeks. ($RUT) via StockCharts.com While the Nasdaq looks to have swung from bear trap to bull trap as the breakdown gap from February remains valid. Volume climbed to register confirmed distribution as it came close to a 50-day MA test. ($COMPQ) via StockCharts.com Finally, the S&P lingered below 1,343 resistance with only lighter volume to offer as any consolation. ($SPX) via StockCharts.com Further losses are likely until indices test 50-day and/or 20-day MAs (whichever is higher). For tomorrow, another day like today would not be surpr

Stuck with a bit of a head cold, but more importantly - temporarily "homeless" as we seek a new rental. Not a whole lot of choice in our area suitable for two young whipper-snappers! Because of this, likely will be post-light until next week and will play it by ear from then. Market was a smidgen more volatile than yesterday, but only the Russell 2000 appeared to suggest a pullback is in the making. ($RUT) via StockCharts.com 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-World in the Zignals Trading Strategy Leaderboard . The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements. Zignals offers a full suite of FREE finan

For today, see yesterday (and for yesterday, see the day before!). Tight trading ruled the day, although there were some movers and shakers. The S&P marked a second high trading volume day in a row, but it would be hard to attribute the small gain to accumulation. ($SPX) via StockCharts.com The Nasdaq punched into the breakdown gap, but the small black candlestick is more bearish than bullish. But on a positive note, since the bear trap in early March any heavy volume day has swung in favour of buyers. ($COMPQ) via StockCharts.com The semiconductor index also broke past declining resistance. Only to finish nestled below its 50-day MA; a battle was won, but not the war. ($SOX) via StockCharts.com The Russell 2000 posted another black candlestick, but not a clear cut 'shooting star'. A test of 836 remains a favored short term challenge. ($RUT) via StockCharts.com So while Large and Small Caps dithered, there was an attempted push higher from semiconductors

Markets experienced a third day of indecision, leaving things much as they were yesterday. The S&P has an inside day doji with modestly higher volume (although volume well below that of late March and early April). Natural play is to trade break of 3-day high/low with a stop on the flip side of the break. ($SPX) via StockCharts.com The Nasdaq attempted a move into the breakdown gap, but it was quickly repelled, leaving the index back at gap resistance. Higher volume counts as an accumulation day, but point gains are what's really needed. ($COMPQ) via StockCharts.com The expectation was for the semiconductor index to drive higher on the back of the NSM takeover. Instead, the gains failed to break declining resistance, or get close to its 50-da MA. ($SOX) via StockCharts.com The failure of the semiconductor to break was enough to keep the lid on the reconstituted Nasdaq 100 via StockCharts.com The Russell 2000 added another half a percentage point. The continuou

There wasn't a whole lot going on in lead indices. The S&P finished with a low volume doji which could offer a swing trade opportunity on break of high/low (stop on the flip side). Technicals are bullish and rising, so the expectation is for a break to the upside. But a double top can't be ruled out either - for this to confirm it will require a (swift) move back and below 1,260. ($SPX) via StockCharts.com The Nasdaq finds itself with another indecisive doji (next to Friday's shooting star) bang on gap resistance. The February gap down dominates and if it's a true breakdown then it's a gap which cannot be filled. Should the gap fill then 2,840 won't be long for resistance. Aggressive bulls can buy break of 2,800, while shorts will be looking to cover around 2,832. ($COMPQ) via StockCharts.com Helping bulls is a confirmed net bullish stance in Nasdaq Bullish Percents and Summation Index ($BPCOMPQ) via StockCharts.com ($NASI) via StockCharts.com S

While dailies are keeping bulls happy, the weeklies are a little more cool. This week marked yet another low volume rally. The Nasdaq is a good case in point. Nasdaq via StockCharts.com But the Nasdaq 100 ably defended 2,217 a few weeks back and may have the strength to drag the Nasdaq and other indices to new all-time highs. ($NDX) via StockCharts.com Nasdaq Breadth - as marked by the Bullish Percent Index - has made an attempted defense of the 60% level. In past instances (2009) of a successful test of this level the parent index powered to new highs. Although technicals are weaker this time around (Confirmed 'Sell'). ($BPCOMPQ) via StockCharts.com On a more positive front, the Russell 2000 is very close to new all-time highs. Should it follow the lead of the Nasdaq 100 it would put the overall market in a very bullish alignment (just needs volume!) ($RUT) via StockCharts.com The S&P defended 1,300 early on the week and there is plenty riding on this key