Friday was the first real move bears have successfully pulled off in recent weeks, at least for the S&P and Dow. In the case of the S&P, there was a decisive undercut of 2093 and 20-day MA, with the index finishing just 9 points above its 50-day MA. As the latter moving averages offered little in the way of support in January or February, the likelihood it that we will see another challenge on the 200-day MA. Volume climbed to register a confirmed distribution day, and came with a technical bearish cross between -DI and +DI. Any rally back to 2093 will likely get shorted on Monday.

Another day, another successful defense of breakout support. The S&P held on to its 20-day MA and is well placed to bounce of this moving average tomorrow. Volume was down, which for a higher close was maybe a little disappointing.

A second day of losses brought markets closer to support, and a potential decision point. The S&P tagged support at 2094 and the 20-day MA at 2090. Bulls will need to step up to the plate tomorrow if such key support is to hold. Lose 2093 and 2064 comes into play. Volume climbed today to register as distribution.

It was looking good for bears, until the late recovery put a bit of a gloss on proceedings. The first half hour of trading (and premarket) will be important tomorrow. The S&P is trading close to breakout support, and the 20-day MA is fast approaching to lend a hand. If bears were able to break both these levels it would open up for some downside. Although, fresh support would quickly emerge at converged 2064 support and the 50-day MA, but beyond that there is room down to 2000/1990.