Market Breadth accelerated higher, firming up the swing low and supporting the current leg of the rally. The swing low emerged from relative strength - not from an oversold state - as is typical at major lows. So while the Percentage of Nasdaq Stocks above the 50-day MA has room to run before it becomes overbought, the Nasdaq Bullish Percents and Nasdaq Summation Index will be soon be in overbought territory once more.

Yesterday's selling had put pressure on Technology indices, and today they responded.  Buyers stepped in to take the Nasdaq and Nasdaq 100 away from breakout support, postponing the possibility for a 'bull trap'.

A worrying sell off in Small Cap stocks overshadowed the selling in other indices.  The Russell 2000 experienced over a 2% sell off, cutting below 20-day and 50-day MAs in the process. However, the February and April swing lows likely mark the boundary of a trading range.  This lessens the significance of today's selling, although you still don't want to see it! The selling did result in a bear trigger in the ADX and increased the relative loss against other indices; this has been particularly ugly against the Nasdaq. Despite a trading range in the Russell 2000, the big relative swing against Small Caps is undermining the April rally. Without participation of Small Caps, the broader rally will struggle for long term traction.  What would add to the misery is if the breakouts in the Tech averages would fail (and they are close to it).

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.