A little more damaging than Friday in that early gains couldn't stick in what would have been a respectable rebuttal of those losses. The Semiconductors managed a perfect tag of resistance before it headed south.  Shorts will have had the best of the opportunities today, although technicals are still net bullish.

The run of gain some, give back a little continued Friday with small losses after a solid Thursday. The S&P remained above its 50-day MA as relative performance shifted towards Small Caps, and Rate of Change moved sharply lower. Volume rose to register a distribution day.  Bulls will be looking to the 1,891 spike low to hold as a swing low; if not, then 1,810 is back in play.

Another good day for buyers as yesterday's recovery saw some solid follow through, with short covering likely part of the mix.  Volume climbed to register an accumulation day as the key 50-day MA was challenged for some indices. The S&P was one such index to close above its 50-day MA. In doing so it edged above 1,950. Supply is unlikely to be an issue until it gets too 2,000.

It was set up for bears with an easy gap down off the open, but buyers were able to put their foot down and drive a higher close. The next result was a mix of bullish piercing patterns and hammers. Up next will be getting past 50-day Moving Averages. The S&P finished with a bullish hammer which leaves it knocking on the door of 1,950 again.  Better still, the Rate of Change returned above zero with a new swing high, potentially ending the bear phase of the market. The 50-day MA is the next challenge, but there may be grounds for a push back to the 200-day MA.

The hard work of yesterday was undone by today's selling. Volume was relatively contained, with profit taking and some eager shorts looking to take advantage of the resistance test. Existing holders have little to fear from today, and wannabe buyers will see this as the start of a buying pullback. The only index to keep an eye on is the Dow. Today's selling reversed the breakout and generated a 'bull trap', but this could also be viewed as a support test.

The Dow is the first of lead indices to confirm a 'Double Bottom' with a neckline break of 16,500. The index tagged the 20-day MA in the process. Bears will need a 'bull trap' to regain control, but they will find it much harder to sustain a move below 16,500 which will now be viewed as an accumulation zone. The 50-day MA will be tomorrow's challenge, but momentum is on its side.  The question is whether other indices can follow suit?

A solid Friday kept indices at the business end of last week's gains.  Tech indices had the best of it, closing with small gains.  This was enough to return a 'buy' trigger in On-Balance-Volume.