Large and Small Caps traded inside yesterday's range, closing lower against yesterday's higher close. While yesterday's buying hasn't been totally eliminated, it will have put a dent in bullish confidence. Watch for follow through selling tomorrow. While the S&P closed above the 20-day and 50-day MA yesterday, today it closed below each of these MAs.  Technicals only require a stochastic drop below the bullish mid line to turn net bearish. Relative performance against the Russell 2000 also accelerated downwards.

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.