Tuesday's action came as a bit of a relief for bulls worried the return of Traders from their holidays would kick start a wave of selling.  For a while it had looked like sellers were about to get what they wanted with a picture perfect break from tight action (in the hourly chart), but it came back strong to close near highs. For example, the Dow showed this reversal nicely.

In the end it proved to be a relatively lacklustre Friday with only Small Caps making the break. Weaker than expected jobs data had looked like it was going to be a catalyst for a breakout move, but in the end there was only one index showing some positivity into the Labor day weekend. Small Caps had been the relative leader compared to the S&P and Nasdaq over the last few weeks and this showed itself on Friday's strong finish. Next step for bulls is the MACD trigger 'buy'.

While there was little net change, intraday action is setting up nicely for bulls. Tomorrow's jobs data may be the catalyst to break markets from tight action and push to new highs. Today's spike low in the Dow found support at its 50-day MA.

Sellers had looked to press in early trading, but buyers were again there to bid markets higher as they approached last week's spike lows. The net result leaves things as they were with Friday's jobs data the next opportunity to move the needle. The S&P may look to tag the 50-day MA if sellers get another swing on this. If buyers are able to continue with today's afternoon action then a tag of 2,200 should be feasible as part of this rally.

I'm waiting for bears to step in and reverse the nascent breakout but it hasn't happened yet. The intraday range was tight and the change relative to yesterday was small. This left little to add. The S&P still has three 'sell' triggers in MACD, On-Balance-Volume and ADX to work off before the rally resumes.

A respectable day for markets, unwinding much of the damage caused by Friday's selling. Volume was down, which softened the day's buying. The S&P had the best of the action, which was a little against expectations for Tech/Semiconductors to drive the gain.

Yellen's speech pushed markets both up and down, but probably left more minds stuck in indecision than offered a clear path forward. Markets don't like indecision, which gives bears and weak longs an opportunity to sell. There are still key support levels to break, but recent weeks of tight action could lead to an unraveling. The S&P finished as registered distribution with new 'sell' triggers in On-Balance-Volume and Directional Indicator. The index has been stuck in a relative downward turn since July (against Small Caps). This index is offering the clearest 'sell' signal.