With indices knocking on the door of new highs for 2016 it was of new surprise to see some profit taking. The S&P has struggled when it gets to 2,100, but each run at this resistance level weakens its importance as resistance. I have left the marker for the head-and-shoulder reversal, but a close above 2,111 will negate it.

Semiconductors were the star of the week.  The index cleared Match/April congestion and posted six consecutive winning days in a row. Technicals are all in the green and the index is above all key moving averages. Weakness will be a buying opportunity; a test of the 50-day MA would be a good start.

There wasn't much to say about to about today as Indices worked on consolidating the last couple days of gains. The real action came from supporting technicals, as they looked to mark a shift from a generally bearish technical picture to a net bullish one. The S&P got to resistance of what was looking a reversal head-and-shoulder pattern.  This pattern won't be negated until 2,111 is breached, but today's action is a step in the right direction.  The only negative is the continued relative under performance against Small Caps.

A big day for Semiconductor Indices has finally boosted other indices. Semiconductors finished above March/April highs on new near term highs in relative performance. It has been a big week for this index and this could set a positive tone for the rest of the summer.

Today was really a non-event. Friday's gains were great, but it was going to be hard to see more of the same today. This lack of action hit high flying Semiconductors after a positive gap open had made it look like another good day was in store. Other indices did very little. Semiconductors finished with a bearish 'inverse hammer'; some may look to the mid-line of stochastics [39,1] as a confirmation of this, but I suspect the index has done enough to return net bullish, which technicals - as of today - have confirmed. Time to buy pullbacks.

Indices finished the week strongly, pushing a follow through to Thursday's gain. Volume climbed to register an accumulation day. Indices still have to contend with moving averages as resistance, but get above these and there is room to run to all-time highs from last year. The S&P is back at converged 20-day and 50-day MAs which is also the neckline of the head-and-shoulder pattern. If bears are to retain control then the neckline has to hold as resistance, which means there is little room for additional gains. Relative performance has switched to under performance against Small Caps.

It was a late morning reversal which clawed back losses from the open. Markets still finished with a close below the open, but it was looking ugly at the start of the day. The S&P  finished with a bullish 'hammer' just below the neckline. On the positive front, it may be rejecting the neckline breakdown I have talked about over the last couple of days. On the negative front, the failure to recover the neckline suggests bears maintain control.