It wasn't pretty - bears played all their cards at market open - but bulls clawed things back (somewhat). The Russell 2000, as the most bullish index, managed to reclaim most of the opening gap loss. The Russell 2000 successfully tested breakout support at 1,059 with the 20-day MA fast approaching to offer additional support. Technicals are okay too, despite weakness in price. Tomorrow is another chance for bulls, but buyers won't tolerate too many days like today.  Stop placement remains on a loss of 1,059.

Bulls remain in good shape despite Friday's losses. The S&P exhibited a narrow loss, but with the 20-day MA just a few points below there is a good chance we will see a test on Monday. There was a new MACD trigger 'sell' to go with the On-Balance-Volume 'sell' of last week.

This weeks stocks covered the asthma and COPD market.  My fundamental commentary is available on the Motley Fool , my technical view on these stocks is here: The stock with the greatest potential to benefit is Theravance ($THRX). The stock is shaping up with a very good base, with excellent consolidation volume following the buying spikes in April and May. The measured move target from the base is $51, but a broader measured move target projected from the April-May rally is up to $62. Technicals are all bullish - be prepared for a volume break of $42 (3 million+ shares) - stops on a loss of $40 with 20-day MA offering a little more room on the downside.

It was a modest defense, but buyers stepped in to break the decline. Short term traders can play long positions with a stop on a break of this week's low. The S&P can alternatively use the 20-day MA as an alternative support. Today confirmed a 'Golden Cross' between 20-day and 50-day MAs.

For yet another day there was little change in the overall market picture. The Dow did get down to (and below) its 50-day MA, and is fast heading to the 20-day MA. Trading volume was light, suggesting sellers are tiring.

Markets went up, they went down, but mostly there was little change. Only Large Caps came out with a downside edge: the Dow will probably see a test of the 50-day MA today, while the S&P works towards a new 'Golden Cross' between 20-day and 50-day MAs, which should offer support if the selling continues. The S&P did register another distribution day, although this hasn't yet led to a 'sell' trigger for On-Balance-Volume.

The Dow has fallen sharply over the same period, enough to leave it just a few points above its 50-day MA; tomorrow may see this key moving average tested. The Nasdaq 100 has been a leading average, although for September it lost ground against the Russell 2000. However, today's losses were light, and for the last three days has performed strongly despite the weakness. Any sniff of buying in the markets will quickly result in new all-time highs for this index (which will fuel further buying). Interesting situation for the Semiconductor index. It's sitting at a converged level of support; a low risk play for Tuesday with a 'Golden Cross' to boot. A number of long side opportunities for Tuesday.  May want to run relatively tight stops just because one can; 50-day / 20-day MAs can be used for stops on longer term positions. --- All Contributions Welcome - Thank You! Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community