Interesting action in the markets. Five days of sharp selling in the Russell 2000 should have set up for a relief bounce, but bears were quick to sell the morning bounce bringing markets back to their open price by the close of business. Monday offers another opportunity for buyers, and while they didn't enjoy success on Friday, they may do better on a second attempt. Thursday's swing low of 1,146 looks a good place for stops.  Watch for sellers again at the 50-day MA.

A day of hidden losses. The S&P rejected a fresh test of resistance, but didn't take significant losses by the close. Volume climbed to register distribution, but it was well below Friday's whopper volume. However, Small Caps took a big hit, dropping nearly 2% as buyers stayed away.  Losses were quick to undercut the 50-day MA and the March swing low. Next up is the February swing low and/or 200-day MA. Relief bounces are likely to be shorted at the 20-day MA.

Buyers concentrated their attentions on the S&P, but the attempted rally stalled as it approached yesterday's high (which is below larger resistance).  Bulls may yet attempt another rally tomorrow, although after today's close the S&P is scored even between bulls and bears.  The MACD and On-Balance-Volume are near term bearish, but stochastics remain firmly in the bulls camp.

Bears were able to push markets into a second day of selling, but the last time they were able to chalk a third day of selling in a row was December. In bears favour is the lack of support; for example, the next support level for the S&P is the 50-day MA.

Friday was set up for bulls, but in the end they couldn't maintain the push. The S&P experienced the largest swing as it posted at a new high from the open, but rejected an attempted a follow through near midday. From there on it was down all the way. Volume climbed to register as significant distribution, although the bulk of the volume came on morning buying (which is now trapped from the latter selling).  This kind of reversal can get ugly quick. Not a time to buy, an aggressive short with a stop above 1,884.

The back-and-forth between bulls and bears continued, this time with bulls controlling the day. Action tightened as the spread between the day's high/low narrowed, although the S&P still managed to experience a relatively wide trade day. Action in the Nasdaq is narrowing to a coil. It could spring either side: a short break should bring a test of 4,245; an upside break will bring 4,371 into play. Either way, a stop can be placed on a flip-side and play it from there.

Wide range days made appearances across the board. Volume climbed to register distribution, but the day was not significantly bearish to suggest either bulls or bears have control. Tomorrow could result in an inside day as it would be hard to see three wide days follow with a fourth within a broader area of congestion. The S&P finished at its 20-day MA without managing a challenge on resistance.