Technology spent another day in the headlines.  Yesterday there was a breakout in the Nasdaq, now today there was heavier volume buying to back it up. The semiconductor index is the 'news' index to follow.  It's breakout will largely determine how long the rallies in the Nasdaq and Nasdaq 100. Technicals are net bullish, another tick in the bullish column for these indices. Even the 'Death Cross' might not last too long.

While volume was anemic, Tech indices managed to push a breakout.  Technicals returned net bullish while the Nasdaq moved to outperform against the S&P. A 'bull trap' will be created on a close below 3,300.

While it's questionable the extent the breadth swing low will support for a rally in the parent Nasdaq (given none of the breadth indicators are oversold), it does suggest the current rally is something more than just a relief rally.

Some small gains, but nothing to suggest a follow through to the past three days of buying. Volume climbed to register an accumulation day, but it barely registered as one. The only real point of note was the finish above resistance and converged 20-day and 50-day MAs in the Russell 2000.

Yesterday's buying managed to bring Tech indices to former rising channel support, pushing them beyond resistance with relative ease.  This was supported by higher volume accumulation. So despite the weak Tech breadth, buying was able to continue. The Nasdaq 100 illustrated this best with the move to challenge the 'bull trap'.

Bulls came to the rescue at support, but there was a general lack of conviction on the part of buyers to build something meaningful. The Nasdaq 100 turned net bearish technically, but the attempt at support has already pulled one indicator back. However, look for it to struggle at 2,825.

Sellers kept the pressure on, with Technology taking the brunt of it. The swing low (and former 'bear trap') from early April was knocked out. This leaves the Nasdaq's 200-day MA as the next target. The Nasdaq 100 also knocked out its swing low, but almost managed to make it to its 200-day MA. Look for other indices to do likewise.