A second day where bulls were unable to hold early gains and markets closed at lows. Following from Friday's action it was disappointing to see bulls failing to build on the two steps forward, one step back nature of this rally. The S&P closed with an inverse 'hammer' on confirmed distribution. The MACD continued to expand on its weakness with On-Balance-Volume close to triggering a 'sell' trigger of its own.  The 'bull trap' hasn't yet confirmed, but tomorrow could be the day we see this happen.

Friday's end-of-week action didn't generate a big splash, but it did give an inkling as to what might happen for the coming week when the sequence of loss, gain, loss was met with a failure of markets to hold on to Friday's strong open. The S&P maintains the 'bull trap' with Friday's low volume amplifying the weakness of Friday. Other technicals are holding on, but for how long.

Yesterday belonged to bulls, today was a day for bears. Thursday's action returned prices to yesterday's lows but not enough to break the trend off February's swing low. A swing low of substance should be in the works soon - the question is whether today is the start of it. The S&P finished with a 'bull trap', expanding on the earlier MACD trigger 'sell'. Other technicals remain positive and relative performance is swinging back in favour of the S&P.

Over the past couple of weeks the rate of buying has slowed. This slowing has become more pronounced as indices pushed into November/December consolidations, but today was a concerted effort to reverse this. The chief disappointment was the lighter volume which accompanied today's buying for certain indices. The S&P still shows a relative underperformance against Small Caps despite the gain. And there is a MACD 'sell' trigger to contend with. However, it has managed to regain the resistance breakout. A push above 2,075 continues the rally.