Bulls managed to mount a more substantial recovery than they have in recent days, to the extent tech indices were left with 'bear traps'. The Nasdaq finished on its 20-day MA, a potential point of attack for shorts. On-Balance-Volume has been rising, and is close to a new reaction high. Should this happen, a break of 3,270 become favoured. Other technicals remain bearish (at least for now).

While it was a decent enough day on a point-win scale, it wasn't particularly robust on a volume basis. Markets have suffered two days of distribution in the last four, with a marked relative shift towards defensive Large Cap Stocks. Given this, any bounce which emerges may see Small Caps underperforming.

There was some digging in of heels at support, but buying volume was light. The S&P held its 20-day MA. On-Balance-Volume switched back in favour of a 'buy', although this particular indicator is in whipsaw territory.

This time, there was no hiding from the selling as the S&P followed the lead of the Russell 2000 and headed lower. The semiconductor index was the big loser, breaking out of its channel after losing 50-day MA support. Technicals are net negative. The 200-day MA is next for support.

Yesterday's day of weakness was followed by a day of gain. However, there was one index which suffered a second day of losses in a row. The semiconductor index cut through its 50-day MA in a warning to Tech indices.  The semiconductor index is on the verge of becoming the first of my followed indices to turn net bearish technically.

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.