Sellers kept pressure on the Russell 2000 with the Nasdaq and Large Caps also partaking in the profit taking merrymaking. Large Caps had begun with a boost, the Dow in particular had started well, but was pegged back to finish with an inverse 'gravestone' doji. With sellers picking up the pace in the Nasdaq and Russell 2000 there is a good chance the 'gravestone' doji will hold to its name and deliver trouble tomorrow.

It didn't last long, but sellers quickly ran out of steam. Monday had the look of a profit taking, but buyers were quick to make a reappearance. Will markets make it back to Fib retracements? They look a long way way away.

Friday's partial trading delivered a final boost before holiday hangover selling kicked in. There is plenty of room for profit taking in the Russell 2000; look to Fib retracements for pullback opportunities. One thing I had missed was the profit take warning in this index; the Russell 2000 has tagged the 14.3% and 12.3% push above its 200-day MA which is in the 10% zone of historic price action dating back to 1987 (see table at the end of this post).

Well, the Russell 2000 just hasn't stopped since the election results. An incredible run. There isn't a whole much to be said on the day, although it was somewhat surprising to see higher volume accumulation. I'll leave you with the Russell 2000 chart.

I covered my short position on today's little pop higher in the Dow Industrials, which along with the Nasdaq, delivered new breakouts. The S&P added nearly a percentage point as Large Caps looked to make back some of the ground lost to Tech and Small Cap Indices. On-Balance-Volume will likely be bullish once volume is posted to the chart - confirming a return to a net bullish technical state.

There wasn't much to say about Friday's action. Indices which had pushed to highs continued to benefit from those moves, while indices stuck beneath resistance remained below resistance. The S&P was a case in point for the latter. Small losses of from 2,190 kept the index pegged to August tight trading action. Volume was light, affirming the action of consolidation. Technicals - aside from On-Balance-Volume - remain positive, which suggest a breakout is favoured for this week.

While Trump's election provided the catalyst to stimulate frenzied buying, it has been Semiconductors which have done most of the hard work. Today's gain provided a cushion to the consolidation built up since September. Since the election result the buying in the markets has looked panicked, but action in this index has look very controlled.  This is good news for Semiconductor stocks, but it should be good news for the Nasdaq and Nasdaq 100. Of the Nasdaq, it's approaching resistance from September. Action in the Semiconductor Index, along with net bullish technicals, suggests further gains could be on the table.