It has taken a while, but bulls were finally able to turn up the pressure enough to see a higher close, on higher volume accumulation.  The S&P posted a new all-time high in the process. There was also a confirmed relative swing from Small Caps to Large Cap stocks.

While today wasn't a follow through on yesterday's buying, it did count as a bullish day.  Afternoon buying undid the morning sell off, breaking the alternative buy/sell sequence which has been in play for the past couple of weeks. Volume dropped off, which undermines the bullish picture a little, although it also means there isn't a scrum of sellers looking to get out. The S&P is pressuring 1,564 resistance.  Doing so would effectively confirm a new MACD trigger 'buy' and confirm the relative strength switch from Small Caps to Large Caps.

Large Caps are stealing attention from more speculative Small Caps and Technology Indices.  The declining relative trend between the S&P and Russell 2000, which has been in play since November, is swinging back in favour of the S&P. The S&P has also managed a new closing high.

Markets are engaged in much back-and-forth which isn't giving either side an advantage. There is expanding technical weakness, which may influence the ultimate direction of the market when the consolidation comes to an end. The S&P is on the verge of an On-Balance-Volume 'sell' trigger, but is holding above its 20-day MA.

Yesterday's small gain was erased with another round of selling, which slightly edged into distribution (in that it was heavier than yesterday's buying, but not really heavy overall). There was no follow through to Wednesday's buying, which was disappointing given the broader strength of the rally. It left the S&P with a MACD trigger 'sell', and the index just above its 20-day MA. Given bulls failed today, the advantage is handed to bears.  If bears are to play their advantage then there should be a test of the 20-day MA tomorrow.

After a couple days worth of selling, bulls made a brief reappearance on day. Volume was down on yesterdays, suggesting little enthusiasm to this rally from bulls. It does mean the indices are again close to resistance, which means the chance for further substantial gains is diminished. The S&P still looks to be on course for a MACD trigger and On-Balance-Volume 'sell'. So today's gain looks like nothing more than a stay-on-execution by bears.

Sellers have taken a shine on the markets since my last update, managing something more than just a couple of points of downside.  Volume climbed to register a distribution day, following from some heavy volume trading on Friday. The S&P eased back off channel resistance, finding temporary relief at the 20-day MA. Technicals haven't rolled to 'sell' triggers yet, marking the resilience of the rally, but also the sustainability in the rate of gain (not too fast, not too slow). A 10% pullback from the last swing high would place the S&P close to its 200-day MA, offering a good pullback buying opportunity.