The Dow was the most bearish of the indices heading into Friday, but despite the lighter volume it was still able to push above resistance, negating the breakdown. Friday's gain didn't do much to slow the relative strength loss against the Nasdaq 100, but with technicals net bullish it does mean weakness should be bought (until technicals turn net bearish). The Russell 2000 posted the smallest of gains. It doesn't change anything, but keeps the index net bullish technically. The Nasdaq kept its breakout intact, again, on the smallest of margins. The semiconductor index was able to build on its breakout, which is good news for the Nasdaq and Nasdaq 100 as they look to build on their respective breakouts. In contrast, Nasdaq breadth is improving, but hasn't yet turned net bullish. The Nasdaq Summation Index is usually the best proxy as the reversals are relatively noise free. The rally is in play, but it hasn't totally reversed the bearishness whic

The semiconductor index ultimately offered a peek into what happened today. Following on the heels of yesterday's Semi breakout were breakouts in the Nasdaq and Nasdaq 100.  The Nasdaq breakout was supported by higher volume, no doubt driven by short covering. Technicals turned net bullish, ending January's bearish turn, and returning the market to its upward looking bias.

It took a couple of days longer than expected, but the rally started from the swing low finally hit a stumbling block. Market ranges were narrow, and the gains or losses minor, which is more likely to help bulls as indices work new challenges of recent highs. Swing trades can look to trade a break of the day's high/lows, with a stop on the flip side.  But momentum is with the bulls, so any short-side break could be short-lived. Technicals for the S&P are net bullish, and will likely remain so for the next few days even if sellers returns.

A surprising show of strength after three days of gains. Most surprising was the Russell 2000. It had looked ideally set up as a short play, but it made short shrift of resistance. However, technicals are still on the bear side, and there is the issue of a 'Death Cross' between 20-day and 50-day MAs. Shorts will next wait for the 20-day MA before attempting a second bite of the cherry.

It was relatively low key, but the Nasdaq and Nasdaq 100 were able to post a third day of gains. In the case of the Nasdaq, these gains pushed the index above its 20-day MA and for now, set a target of the high at 4,247. More importantly, the rally has managed to take out the mini-swing high from late January, giving bulls a little more confidence going forward.

Buyers will have been relieved to have seen a second, decent day of gains following the losses at the start of the week. Volume just about registered an accumulation day, although there is perhaps some concern the buying of the last two days has come on lighter volume than the selling which took indices to these lows. There is also the case the swing low of February undercut the swing lows of December, setting in motion a possible shift in trend, or at the least, a new trading range. The S&P should have enough to take it up to the 20-day MA, where Friday's gains weren't enough to stop a 'Death Cross' trigger between 20-day and 50-day MAs. The rally will find it more difficult once it gets to this convergence, which is also a horizontal resistance level.

Today was a relatively easy day for bulls. The decline had created a bit of a vacuum, which today's rallies happily filled. The semiconductor index worked itself off rising support, closing above the 50-day MA, but finishing below the 20-day MA.