Yesterday's gains were undone by today's round of selling.  Volume climbed to register a second big distribution day in three as technicals remained under pressure. This selling doesn't look done. The S&P was able to defend its 50-day MA, which is in close proximity to rising channel support. However,  with similar support trashed in the Nasdaq and Russell 2000, it's going to be hard for the index to hold this support.

The rebound was decent, but lacked volume conviction. It didn't do enough to reverse the breakdown in the Russell 2000, but it did push the Nasdaq and Nasdaq 100 into a 50:50 situation. The Russell 2000 came back to the breakdown line, but finished below its 50-day MA. Technicals are close to a net bearish turn.

It was a bad day at the office for bulls, but the selling hasn't totally handed control to the bears.  The swing lows are still defendable positions, although action in the Russell 2000 suggests these won't be defended very hard. The near 4% sell off in the Russell 2000 knocked out the swing low, with a clean slice of the 50-day MA to boot.  There is little to protect until the index gets down to its 200-day MA. What's most problematic is the role of the Russell 2000 as a trend leader, and this trend is clearly favouring bears (for Small Caps).  Look for Tech and Large Caps to follow - eventually.

The Masters has me distracted, so I will just show two charts: The Nasdaq has had a very good run of form of late, but it hasn't really changed the breadth picture a great deal.  Bulls will look to the new swing low which will be confirmed if the Nasdaq Summation Index crosses above its 5-day EMA, and other breadth indicators hold their 5-day EMA.  Bears will see a dominant bearish trend, particularly in the Percentage of Stocks above the 50-day MA, and suggest the current run is nothing more than a relief rally.

A bit of a backlog on the posts, but here we go: Click links for fundamentals on THC, NTES and ISIS , EQT and CNP , AA and SWC , JNJ, MOV and EL , GWRE, PDCE and BLOX . --- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . You can read what others are saying about Zignals on Investimonials.com . JOIN ZIGNALS TODAY - IT'S FREE!

It was going to be hard to expect a good follow through from yesterday's buying, but today didn't disappoint with markets retaining most of the gains. The S&P even managed to finish with a modest gain. Enough to build on bullish technicals.

The 'Bear Traps' are playing to form with a substantial jump to help push new market highs. Volume picked up in support with some technical improvement.  Breadth is also attempting a swing low which will help support an extended rally in Tech indices. The S&P inched an accumulation day as it pushed a new high. There was also a MACD trigger 'buy' to negate what had been the only bearish indicator