Healthy Action in today's markets as early selling was outdone by afternoon buying. The respectable close will help build confidence of buyers, at least until the November-December trading range is challenged. For the S&P. 2,000 looms overhead, but until this is challenged there is little to add. The Nasdaq closed near today's highs as it sits on the verge of  a new On-Balance-Volume 'buy' trigger. The Russell 2000 had only a small gain, but it has the most work to do to rebuild confidence.  On the positive front, it's close to a 'buy' trigger in On-Balance-Volume. Another index doing well is the Semiconductor Index. It registered nearly a 1% gain as it looks to recover 2016 losses. Supply doesn't become a concern until 650 is reached. Tomorrow is a chance for bulls to kick on and put further distance on the recent swing low.. Not much more to add until then. Buyers can now look with greater confidence to accumulate pull backs.

Markets were setting up for a push lower, but Friday's upside break from consolidations triggered a wave of buying (and short covering). The buying was accompanied with higher volume accumulation. Shorts were left squealing by Friday's action, and new shorts will need to wait until Nov-Dec consolidations are tested before new positions are entered. Until then, short covering and long buyers rule the day. The S&P has taken the first step of a rally to take it back to the supply zone of 2,000. Friday's action was accompanied by a MACD trigger 'buy' and On-Balance-Volume 'buy' trigger.

The consolidations developing in the market remained in play by the close of today's business. Volume climbed in confirmed accumulation, which is a potential sign for an upside breakout from these consolidations. But with bearish lead-in trends, any upside breakouts will quickly run into supply issues from Christmas consolidations. The S&P is shaping a pennant just above support from September/October swing lows. There is a weak 'buy' in the MACD and On-Balance-Volume.

The back and forth in the markets continued as yesterday's gains were undone by today's higher volume selling. The concern with today's action is that the consolidation in the S&P has the look of a bearish continuation wedge. And given the potential for a measured move, it opens up the possibility for a push down to 1,650s. A weak 'buy' signal in the MACD could trap more bulls.