Small Caps took the biggest hit from sellers with a substantial bearish engulfing pattern (at least, relative to the last couple of weeks). The rally didn't make it to channel resistance, so it will be interesting to see how it does when it makes it back to its 20-day MA.

It was a specialists' day. The Dow was actually a big winner on the day: it posted a 0.7% gain while remaining inside its rising channel. It earned its gains on a background of quiet action in the other indices.

Little to say about the last two day's of action. Volume action was light, but with the exception of the Dow Jones Index, indices continued to toy with highs. The only real indication of change was a continued shift in relative strength from the S&P to the Russell 2000.

It was a good day for speculative Small Caps and Technology Indices.  The gains were modest, but the advances came on higher volume accumulation. Having said that, the semiconductor index didn't do enough to challenge the 'bull trap'.

While scrolling through my charts I didn't see to much until I got to the semiconductor index. Horrible day for index - a big 'bull trap' which will prove hard to recover from after a 3.3% loss.  A move back inside of the gap should see a quick move back to 505, but beyond that could be a struggle.

Anyone trying to short channel resistance at the S&P would likely have had a very brief trade. Today's action pushed the index outside of its channel, albeit on low volume.

Monday started with a breather, and tight trading on a very narrow intraday range. Volume fell in line with a consolidation day. The S&P remained pegged by channel resistance on a doji. Aggressive players could go short with a stop just above channel resistance, although given the break of channel resistance in the Nasdaq and Nasdaq 100 there is a good chance it will follow these indices higher.