It was a mixed day for markets. Bulls will take heart there wasn't an immediate follow through lower as Friday's selling had looked to suggest. Bears will still consider it a favourable market, but will need a more decisive sell off to break the support which remains. The S&P is delicately poised. A loss of 1,956 will open thing up and should quickly offer a retest of 1.867. Today's volume was very light, but enough to maintain the 'sell' trigger in On-Balance-Volume.

The Fed decision delivered the 'sell the news' action, while Friday followed through on this reversal. With earlier consolidation breakouts now fading to 'bull traps' the scene is set for further selling in the early part of next week. On the flip side, a retest of August lows could offer a nice long set up which could merge with a 'Santa Rally' later in the year.  If bulls are to recover last week's breakout, they will need a good show of strength tomorrow. Friday's distribution in the S&P was comparable to that delivered in August. The move came with a 'sell' trigger for On-Balance-Volume. But all of this is building on the relative underperformance of the S&P to the Russell 2000 dating back to the end of August.

The more this rally distances itself from the prior consolidation, the greater the chance the Fed decision (irrespective of rate raise or not) will act as a 'sell the news' catalyst. Markets have gained in what ranks as accumulation, but volume is still relatively light compared to the selling which cut through the markets in August. The Nasdaq is knocking on the door of the prior trading range, and the get-out-at-breakeven crowd will probably be looking to bail out. Add to this overhead resistance of the 50-day and 200-day MAs adds another level of supply to consider. Traders who were smart enough to buy near the spike low will also be looking to bank some handsome profits.

Everything is really gearing towards Thursday's rate decision, but there may be a fake move before then. Shorts may find joy in the Tech indices given the favourable risk:reward, but I wouldn't be surprised if such short positions were whipped out before then - so buyers and sellers beware. The S&P is balancing under performance against the Russell 2000 with 'buy' triggers the MACD and On-Balance-Volume. As today's action finished lower the expectation will be for a consolidation breakdown tomorrow, but take nothing for granted. Trade the break.

A late flourish on Friday has opened up the chance for a big short covering rally. Shorts will need a loss of  Friday's lows to bring a break of rising support. Longs probably have the easier path, but it could be a volatile session. The S&P has coiled nicely, but trading volume was light on Friday. Play for break of support or resistance.

Bulls managed to reclaim most of yesterday's 'real body' losses, but by the close of business had given back half of those gains. Creeping higher highs across indices will be under threat tomorrow, and if they break, then things are likely to get ugly quickly. The S&P finished with a MACD trigger 'buy' as it closed on rising support. A loss of this opens up a retest of 1,867, and maybe a measured move lower (which is 1,760). Bulls will be looking for a fresh challenge of today's losses and a 'buy' in On-Balance-Volume.

It was an ugly sell off, but Tuesday's lows weren't challenged and this will stand in bulls favor tomorrow. However, the day itself was clearly one where bears had control from the open through to the close. There is still the need to break the consolidation, and bulls will look to contain further losses tomorrow. The S&P is on the verge of a MACD trigger 'buy' and On-Balance-Volume 'buy'. However, it's still clearly underperforming against the Russell 2000.