The trendline in play for the S&P from March was breached on higher volume distribution. However, the index remains inside a secondary trading range bound by 2,040 and 2,130. Technicals are also net bearish.

A mixed bag of action. The S&P finished Friday bang on trend line support. The equivalent trendline which was breached as support in the Dow. However, Friday saw higher volume distribution for the S&P, but not the Dow. The S&P saw a net bearish turn in technicals, which followed an equivalent turn in the Dow.

Yesterday, the Russell 2000 broke past resistance. Today, the S&P dropped out of its consolidation pennant, finishing on trendline support. Volume rose to register distribution with only stochastics holding on to bullish momentum. If there is a positive it's that today finished at converged support; tomorrow may be the bulls last chance to make a run to 2,120 unless a more protracted consolidation emerges.

In a low key move, the Russell 2000 broke from its channel in a relative swing in favour of Small Caps and away from Tech and Large Caps. This is important development for bulls looking for a larger push outside of 2015 consolidations for range bound S&P, Dow, Nasdaq and Nasdaq 100.

In a break from tradition, instead of the typical Friday gain we instead got another round of selling; negating the bullish setup from Thursday. To add insult to injury, volume climbed to register distribution. The S&P finished on the rising trendline, but just below 20-day MA. Technicals show bearish MACD, On-Balance-Volume, and ADX trend.  The 50-day MA could be the last chance saloon for a breakdown.

Today's late recovery returned initiative to bulls. The Nasdaq finely placed to challenge new highs, helped by the major breakout in the Semiconductor Index; an important economic barometer.

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