Tech averages had the weakest start, Powerful gap downs had set things off, but buyers were able to make a comeback into the close. However, morning gaps remain. Volume climbed to register as distribution, which for the Nasdaq was the second day of distribution in a row. The Nasdaq 100 is on the fiftth day of selling in a row. The August swing low wasn't fully tested. Bulls will be looking for a bullish 'morning star' where today's candlestick 'hammer' is followed by an opening gap, then a rally for the rest of the day. Should this emerge, then a move to test 4,300 is next. If there is a weak open, then any chance for a bullish 'hammer' based on today's action is significantly weakened. Losses in the S&P, while comparable to the Tech indices, didn't see a loss of January's lows.  Today's spike low did fall inside the range of January's spike low. This will offer grounds for a positive response tomorrow; today's lows

A quick post before the Superbowl begins. Friday's action was very disappointing if you were in the bullish camp; poor jobs data contributing to the malaise. However, investors can view this as another buying opportunity, with the Nasdaq clocking the 10% percentile of historic weak prices dating back to 1971, and the Russell 2000 making fast work of a push back to 958. Again, it's not about investing everything at once, but perhaps using the coming year(?) to build long term positions. I would be happier to see a 40-60% trim from highs - keep an eye on my bottom watch table, but this is the kind of action which helps reset the bulls count. The S&P registered a clear break of rising trend. Volume was lighter, so it wasn't necessarily a panic sell. And while it could be viewed as a breakown, the glass half full crew would see this as a drop back into the prior consolidation. The disappointing aspect is that the previous Friday's buying failed to follow through highe

Small Gains as indecision held sway. The S&P finished inside the range of last Friday's breakout and held rising support, but the index did the minimum to pacify bulls.

Better stuff from bulls as early selling quickly gave way to fresh buying. Best of the action belonged to the Russell 2000 with a bullish cross in the relative performance with the Nasdaq and its 20-day MA. The Russell 2000 is also clinging to a support level and maintaining the 'Bear Trap'.

Last Friday saw a big swing in bulls favor as shorts were forced into covering and value players stepped in to buy the positive reaction to the swing low. Shorts look to have made a tentative return of the market as value buyers failed to follow through on Friday's action.  Volume climbed to register as distribution, but it was well down on Friday's accumulation.

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.