Out of today's action - the Dow might give shorts something to work with on Tuesday. The Veteran's day holiday was unlikely to generate a follow through day from Friday, but did well not to give back gains, which often happens in the absence of active buyers - irrespective of selling action. This makes any short position a considerable risk, but at least at today's close the risk of such short plays is low.

Decent day on Friday, even if it wasn't enough to recover all of the losses from Thursday. The S&P is close to undoing its 'bull trap', instead rallying back to resistance.  The net effect is to leave the index in a trading range, and shorts squirming.  It's not a full negation of the 'bull trap', but it's a good start.

It looks like indices were doing their best to upstage Twitter's IPO .  Both the S&P and Nasdaq closed with 'bull traps', threatening larger pullbacks. It will take a push above October's highs to knock out the 'bull traps', which may take a few days. What today offers is an opportunity for shorts to take a shot at a possible larger move lower. The S&P also managed to log a MACD trigger 'sell', but countered by holding its 20-day MA. Assuming some defense of the 20-day MA on Friday, look for shorting opportunities as the bounce takes the index back to Thursday's open.  Stops go above 1,775.

The flight to safety continued to play out with the S&P, and Dow in particular, enjoying gains; while the small cap Russell 2000 suffered. The Dow is fast approaching channel resistance as it manages to post a relative gain against tech indices. On the plus side, the S&P has long since pushed itself beyond such resistance; on the negative side, technicals are overbought, but not yet indicating a top.

In honor of my millionth page view (it has taken 8 years to get there...), a "What-if" scenario for those looking for a pop in this rally, next year. Outlandish enough to be plausible, but it would take a huge whallop for it to happen. I'm of the belief a major secular bull market is about to begin - if it hasn't already.  My ideal would be a decent cyclical bear market, perhaps taking 20-25% off the highs (whatever that may be), to get this new bull market rolling. The market has 'enjoyed' a scrappy consolidation since 1998 and is ready for stability. One more awkward leg down wouldn't surprise me here. View Chart All Contributions Welcome - Thank You! Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . You can read what others are saying about Zignals on Investimonials.com . JOIN ZIGNALS TODAY - IT'S FREE!

Monday's nascent gain was challenged by early morning losses. However, bulls were able to regain the majority of such losses by the close of trade. The Nasdaq and Nasdaq 100 had the best of the day's action, going as far to post a modest gain. The Nasdaq 100 has a relative lead over the Russell 2000, and is attempting to regain relative strength against the S&P.  If there is an index to gain tomorrow, one of these is it.

Markets have been making baby steps up or down, but the one thing they haven't been able to hide is the broader swing back to Large Cap stocks, and away from speculative Small Cap and Technology stocks.  It's a growing flight to safety which will benefit S&P buyers, but is an indication of a larger move down - likely a test of 50-day MAs at least. With the S&P attracting what monies are coming from the sidelines, it will be important former channel resistance turned support holds.  Otherwise a shortable 'bull trap' will emerge.