Yesterday's recovery followed with further highs, but then buyers went AWOL and things settled back to the day's lows. Rinse and Repeat. The S&P has nestled itself against rising trendline support as today's action registered as confirmed distribution.  Tomorrow, bears will be seeing if they can break the trendline, but I won't be holding my breath.

It was looking ugly for indices at the open, but by the close of business much of the day's declines had been reclaimed. For the S&P, the break of the rising trendline (and 50-day MA) was looking all but certain when sellers hit the index hard in pre-market trading, but Tuesday's finish does give bulls something to work with for Wednesday. Whether they can do anything about it is another matter. On the bright side, selling volume was down on Monday's buying; this kept the 'buy' trigger in On-Balance-Volume intact.

After Friday's gains in the Dow there was an opportunity for other indices to follow suit, but buyers suffered a bout of shyness. Tech and Small Caps finished the day near their lows after handing back early gains. For the Russell 2000, the day finished with an inverse hammer just below its 50-day MA (which is about to 'death cross' with its 20-day MA). The inverse hammer followed Thursday's indecisive doji, leaving the gap vulnerable to a fill tomorrow. A new downward channel may be emerging here and needs to be monitored.

Star of Friday was the Dow Jones Industrial Average as it cleared congestion dating back to March, although there is still the 'bull trap' from February to clear. Volume climbed to register as accumulation, and it came with a MACD trigger 'buy' and On-Balance-Volume 'buy' trigger.