While it didn't bank the biggest percentage gain, the Nasdaq was able to register a day of higher accumulation, although volume was light in general.  The gain in the Nasdaq didn't change the technical picture a great deal, but it did manage a close above its 20-day MA.

Bulls made a stab at forming a swing low with a gap open, but were unable to push on with further gains. Sellers returned in the afternoon, but the gap remained in play by the close of play. The Nasdaq remains the index best positioned to build on bullish momentum given it still holds breakout support. I have redrawn the line in the sand for this index at 4,245; a failure of which would see this morph into a broader trading range with support down at the December and February swing lows.

The S&P breakout (from the January highs) was negated on Friday's close, effectively converting the February-March rally into the boundary for a horizontal trading range. There was a 'sell' trigger in On-Balance-Volume to follow the earlier one for the MACD.

Old news was tied to today's losses, but this is a rich market which if offering more to holders who have held shares over the last 5 years to sell, than those willing to buy.More importantly, it was the first real day of intent from sellers, as up to now, bearish action had been weak. Volume registered as confirmed distribution. Hardest hit was the more speculative Russell 2000. The sizable bearish engulfing pattern effectively wiped out the breakout, leaving a bull trap. The index did finish on its 20-day MA, but I wouldn't get too comfortable with that. There was a 'sell' trigger in the MACD to add to the misery. Even with this, the index is still outperforming the Nasdaq.  Shorting opportunities will become available on rallies back to the engulfing high.

Better stuff from bulls as traders mounted defenses of support. The semiconductor had the best of the action, its large bullish engulfing pattern off the 20-day MA keeps with the story of an accelerating trend. It's not totally out of the woods: the MACD trigger and CCI 'sell' suggest this rapid advance will consolidate soon, although bulls are likely to maintain the long term advantage.

After a series of relatively tight trading days, today opened up with a clear swing to sellers. Volume climbed to register distribution, but markets are really feeling for support following recent breakouts. Weakest was the Russell 2000.  It registered over an 1% loss as the measured pullback gave way to more active selling. Tomorrow will see how valued 1,180-1,182 support is for the index.  The CCI experienced an advance 'sell' signal.

The second half of last week saw challenges of recent highs rejected (for the Russell 2000 in particular), but today it was the turn for bulls to repel the action of sellers. The S&P returned to its open price, although trading volume was light. Today's low is a place for stops, although buyers will want to see morning action hold above 1,877 to build confidence.