Lots of movement during the day, but by close of business there was little to say. The S&P registered higher volume distribution as it was able to defend converged 20-day and 50-day MAs.

It was looking rough for bulls when cash markets opened today, but a swift recovery helped drive markets back to their daily highs, and in the case of Large Caps are close to a new breakout. The S&P finished on lighter volume buying with a 'sell' trigger between +DI and -DI. Tomorrow is set up for a breakout.

It was day sellers had control over not long after the cash open. The Russell 2000 broke from the channel in a clean slice which left the index just above the 50-day MA. The index had already suffered a relative loss to the Nasdaq and S&P, and today's decline just accelerated this decline.

There wasn't a whole lot of action during the cash market session as indices held on to most of their premarket gains. The only index to come up short was the semiconductor index. It confirmed a wedge breakdown, and it's looking increasingly likely a double top is in play. A retest of the 200-day MA would appear to be the favored outcome going forward.

The Nasdaq broke resistance yesterday, and today the 'bull trap' in the index was negated. Trading volume also climbed to register as accumulation, The Nasdaq is market leader against the S&P and Russell 2000; bulls will look for continued money flow into speculative issues to drive the broader rally.

The Nasdaq and Nasdaq 100 gained ground, the former index is in the process of building a challenge on the 'bull trap' high, although the latter index still has converged resistance to take care of. Nasdaq gains were on lower volume, but technicals remain positive.

The spectre of Friday's selling was in the air, but when sellers did make an appearance the net result wasn't too damning. The S&P is caught in the middle between 2120 resistance and rising trendline support. There was also a relative strength shift away from Large Caps, although this is more bullish for the market as a whole.