It was a solid end of week for Large Cap indices, even if trading volume was a little on the light side. The Dow cleared a thick band of supply between 11,730 and 11,895 and pushed into congestion of early 2011. It has been a straight rally from the 10,400 low so the former band of supply should now play as demand. Look for buying volume to increase on the next push below 11,900. The S&P was able to push past strong resistance of its own at 1,209, although it finished the week just shy of minor resistance at 1,300. A successful back-test of 1,209 would be preferable (against a further push higher) to confirm the breakout. The Russell 2000 is up against 'bear flag' resistance, but given the action in Large Caps a break higher is favored.  Likewise for the Nasdaq. Helping it is the higher volume accumulation enjoyed over the week. As for next week, keep an eye on Large Caps. It will likely be a 'soft' week with little net change. But with se

A huge day in global markets brought some significant technical breaks for individual markets. All markets enjoyed confirmed accumulation, following on from yesterday's higher volume buying. The S&P sliced through its 200-day MA while clearing 1,260 resistance. Any weakness from this point should see support at 1,260. Despite the big gain, relative strength continued to shift away from Large Caps towards speculative Small Caps - this is an overall bullish development. The Nasdaq gapped through its 200-day MA and held the 200-day MA as support in an intraday test. The index currently sits in a void of supply until 2,836 is tested. This is a good opportunity for bulls to further drive the advance. Market leading Small Caps enjoyed a clear gap break of resistance, turning 731 from resistance into support. Upcoming is a tricky convergence of 773 and 200-day MA resistance. Note - while it's market leading it has come from a greater point of weakness, hence its curren

Bulls were again able to prevent a bearish follow through on prior day's selling. Also working in bulls favour was the higher volume accumulation. The S&P is well prepared to mount a new challenge on 1,260 resistance and push on towards the 200-day MA. Technicals continue to strengthen in support of the rally. The Nasdaq enjoyed an intraday spike low into 2,616 support. This sets up an opportunity for a new challenge on 200-day MA resistance. The next break of the 200-day MA may be the one which sticks. Nasdaq Market Breadth continued its improvement - the Summation Index has enjoyed smooth sailing with market reversals typical at 0 or higher; it closed today at -85. While the semiconductors look set to break 381 resistance And the Russell 2000 may yet negate Tuesday's 'bull trap'. Today's rally left the index just below 731 resistance. The likelihood of the week finishing as I had expected it to start (i.e. weak) will depend on whethe

What had looked likely on Monday instead emerged Tuesday. Monday's gains were wiped out as sellers pushed markets into last Friday's trading range. The one exception to this was the semiconductor index. Yesterday's attempted break of 381 resistance failed, but loses were relatively modest and the index remains nicely positioned to mount a second breakout challenge. Technical strength remains good. Large Caps, as represented by the S&P, saw a picture perfect reversal off 1,260. The early October breakout remains valid and the 20-day MA (following its recent 'Golden Cross') is nearby to provide support. Small Caps are looking the most vulnerable to further selling. The index shed 3% as yesterday's breakout reversed into a potential 'Bull Trap'. Technicals are still okay and a new 'Golden Cross' is imminent - both of which help the bulls cause. If further loses emerge over the course of the week then look to the 20-day MA for support

On Sunday I commented on the weekly picture of markets  where I suggested this week would be bearish, with the weakness to start on Monday. As is the norm, markets ignored this and powered higher - Small Caps and Semiconductors performing particularly well. The only aspect which struck as bearish was the drop in stock breakout candidates from Friday's 26 to today's 13 . Small Caps finally turned net bullish in their technicals as 731 resistance was cleared; The counter rally which emerged from the September breakdown and subsequent bear trap played to form as it ignored summer resistance. There was also a continued (bullish) expansion in relative strength terms against Tech and Large Cap indices. Helping Tech indices were the semiconductors. Here there was an early stage 'Golden Cross' between 20-day and 50-day MAs, further helped by the break of 381. Strength in semiconductors helped fuel the rallies in the Nasdaq and Nasdaq 100. The latter index is fast ap

Markets closed the week at or near their highs, although the 'bear flags' on the weekly timeframes were not breached (to the upside). The Russell 2000 continued its advance towards 760 resistance with technicals improving and a long way from overbought territory. Plenty of room for upside. The Dow enjoyed a stronger accumulation as technicals finished the week net bullish. However, it was an index which finished on 'bear flag' resistance, so despite the bullish technical setup the preference is for a move down Monday. The S&P was able to go a step better and edged over 'bear flag' resistance and put some distance on what had been a resistance around 1,209. Technicals also turned net bullish for the week. The Nasdaq closed the week slightly lower, but technicals did enough to turn net bullish. But helping the Nasdaq is the continued improvement in market breadth. The Percentage of Nasdaq Stocks on Point-n-Figure 'Buys' improved t

Another day where bears couldn't maintain the pressure. By early afternoon it was looking good for them but buyers returned indices back to (or close to) where they started. The S&P has been trading a very narrow range for the past five days. Bulls have been able to hold support of former channel resistance and this looks set to continue. Technicals are in good shape as relative strength swings back to the safety of Large Caps and away from speculative Tech stocks. The good news for traders is the relative easy positioning of stops; The index should break higher in the direction of the October rally, but should it not do then a stop above 1,230 should be sufficient protection for a short position. ($SPX) via StockCharts.com Because of the shift in buying towards Large Cap stocks, Tech indices like the Nasdaq are drifting slowly away from support. Today it was looking bad in early afternoon trading, but buyers returned to take the Nasdaq close enough to be considered in