It was inevitable, given the action over 2016, that bears were going to make an reappearance. Today's selling fell in line with near term profit taking with volume down on recent buying. The Nasdaq 100 experienced the worst of the selling, but buyers will be looking at a move down to 4,000 to buy value. More higher volume accumulation days would help build confidence. The Russell 2000 has done well to rebuff the heavier selling which has marked this index over the last part of 2015. Action over the last couple of weeks has the look of a 'bear trap', and today's narrow action should be favourable for bulls. If there is a push into the 'bear trap' it will be important for buyers to accelerate by creating a spike low. The S&P is sitting just below 1,940 and is on the verge of confirming a double bottom. The 50-day MA is fast approaching from above in a convergence with 1,940. A break of this combined resistance zone would firm up an intermediate ter

A third solid day of bullish action has built up the potential for market double bottoms.  Selling from here will be treated as a pullback rather than a drop into the abyss. For the S&P, volume picked up to register as accumulation. A test of 1,940 will be interesting - watch for this tomorrow. On-Balance-Volume is close to a 'buy' trigger, to support the earlier signal in the MACD. The Nasdaq broke resistance of the declining channel. A push to the 50-day MA at 4,722 is the next target.  The push below 4,350 left a 'bear trap', so any weakness will want to hold on to former resistance, turned support at 4,350. On-Balance-Volume marks the breakout with a 'buy' trigger. The Russell 2000 was not the same high flyer as Large Caps, which was a little disappointing, but the index was able to push itself back inside the prior consolidation. The Dow might be the index to confirm a double bottom. It closed today right on the neckline. Watch for

Finally, some good news for my Kinder Morgan shares, although it's unlikely I'll see this back to my cost basis until 2017. As for the indices, it was a solid day, even if volume was a little light. The Nasdaq looks ready to break from its channel. Today registered as an accumulation day with a fresh MACD trigger 'buy'. There may be room for a rally back to the 50-day and/or 200-day MA (or 4,900).  Beyond that and things may get more difficult.

Tech and Large Cap indices sit on the border between a bear market or a steep correction.  While Small Caps have fallen into bear market territory, there is still a chance for other indices to come in from the precipice.  The most bullish of these markers is Nasdaq Breadth metrics.  Nasdaq Bullish Percents and Percentage of Nasdaq Stocks above the 200-day MA have dropped to levels last seen during 2011 lows.

The Asian session had set up for big losses, but markets were able to defend against such losses even if finishing with a lower close. The S&P tagged the January low, but it's hard to see it holding out if there's another challenge on 1,810. The Nasdaq was able to register a higher close (although below the prior day's close). It probably did enough to negate what is normally a bearish black candlestick, but bulls won't have any confidence until the bearish channel is broken. The Russell 2000 was the index feeling the most heat. The gap down didn't manage to do more than leave a small bullish hammer. The MACD trigger 'sell' expanded, and new lows keep pricing action on the side of bears. As the relative market leader, what goes here goes for other indices. Tomorrow is a chance for bulls to buy a change in fortune.  After five consecutive days of losses it's time for bulls to apply the squeeze. You've now read my opinion, next r

There wasn't a whole lot of change by the close of business, but intraday strength was clawed back in worrisome fashion. The end result was to leave spike highs in markets. The S&P finished with a MACD 'sell' trigger, but on lower volume. The 'sell' trigger was below the bullish zero line, which makes it a strong signal.

The gap down had set up for a big bearish move lower, but the collapse never appeared. Instead, lows held as support. On the flip side, an attempt at a rally couldn't get off the ground, but markets were able to do enough to register a close above the open. The S&P closed with a spinning top below support. Watch for a strong 'sell' signal in the MACD as other technicals remain bearish.  The only positive is the strong relative performance against the Russell 2000.