The Dow had the best of the action, with higher volume buying to close the day out. The index closed above the 20-day and 50-day MAs. The next challenge is to push above 18,100; which is the 'bull trap' and the recent spike push to 18,205.

Indices trading near support, but Friday's close didn't do enough to pull away from support. Monday offers a chance for bulls to make back lost ground, although given this is the second run at support for March there is a higher chance of support failure. In addition, Friday's buying volume was lighter. The S&P continued its under-performance relative to the Russell 2000 and Nasdaq. The 20-day moving average is an opportunity for shorts to attack should bulls be able to mount some follow through from Friday. Otherwise, a cut below Friday's open at 2063 could open the flood gates for bears. Bulls will really need a move above 2095 for confidence to return. The Nasdaq was able to defend its 50-day MA and with Intel looking to takeover Altera there may be room for further gains. As with the S&P, Friday's trading volume was light. If bulls do make an appearance on Monday then watch if bears turn up the heat at the 20-day MA. The Russell 2000 is proba

There was some carryover from yesterday's heavy day of selling. My tracking of ETF alerts for Zignals didn't mark a trend reversal for ultrashort ETFs, only ultralongs; suggesting yesterday's selling was primarily driven by profit taking and not shorting activity. Today's action brought indices closer to support, which slowed the rate of loss. The S&P closed with a neutral 'spinning top' on lighter volume. The 50-day MA didn't offer much support, but the low at 2,039 remains valid.

A difficult day for bulls as sellers swarmed out of the gates. Volume climbed to register distribution across all indices as technical weakness expanded. The S&P finished the day below its 50-day MA, but hasn't yet challenged support of the March swing low at 2,039. If a double top is to emerge, then a close below 2,039 is required; if this plays true, look for a downward target of 1,965. Technicals already point in shorts favour with a MACD 'sell' trigger and bearish cross of +DI / -DI.