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Technology caught up with Small Caps as the rubber band of relative strength swung back to the Nasdaq. However, the Russell 2000 didn't disappoint with its seventh straight day of gain. The index is just 14 points away from its measured move target .

Large Caps made their move yesterday, this time, it was the turn of Tech indices to post gains. The semiconductor index hasn't quite negated the bearish engulfing pattern, but it has gone a long way to making up its loss. The 'bull trap' is a secondary level to take out. However, both bearish engulfing and 'bull trap' could be taken out Thursday.

It looked like bulls and bears got something out of Tuesday's trading.  Bulls get the overall winners nod as there were fresh breakouts for the S&P, Dow, Nasdaq 100; with the Russell 2000 and Nasdaq adding to their respective breakouts. Volume rose in line with accumulation. But, semiconductors had a lackluster day despite logging a 1% recovery. The S&P finished the day with a number of support levels below it, notably the former channel support which crossed through (now defunct) resistance from May highs, with the 20-day and 50-day MAs nearby.

It was a modest day for the markets, with morning gaps doing most of the leg work for bulls.  However, there was enough strength in the market to break the net bearish turn in technicals for many of the indices, and all key indices are back supporting the long term bullish picture, ending the May-June decline. Pullbacks can be viewed as buying opportunities It's not all plain sailing for bulls. Resistance remains in play for certain indices and the semiconductor index posted a significant bearish engulfing pattern.  If you are a short, or looking to short, this is the index to watch on Tuesday.

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For a shortened day, Friday was a good finish to the week. Indices closed strong, even if volume was never going to be a key decider. The S&P made it above its 50-day MA and is approaching former channel support turned resistance.