During early afternoon trading it was looking like the Russell 2000 was going to break support and leave a 'bull trap'.  While the 'bull trap' remains in play the loss of support hasn't been confirmed which would show a reversal. However, this is acting as a lead index and will determine what may come for the Nasdaq and S&P.

It was another good day for bulls, particularly for the S&P. An acceleration in weakness brought about in late morning action was reversed with steadying buying over the last two hours of trading. The S&P has been range bound since early December. Today's action didn't change that, but it suggests the breakout - when it comes - will be higher. The Nasdaq also felt pressure with it own sell off. Volume was down on recent weeks, but it was enough to keep bulls in control. The Russell 2000 had a quiet day, registering just a 0.05% gain. The best of the news was it not drifting back to support, where the risk of a major breakdown lurks. For tomorrow, look for bulls to continue their good work.  The Russell 2000 looks least likely to do anything exciting, but the S&P (and Dow) is well positioned for a breakout. You've now read my opinion, next read Douglas' blog. I trade a small account on eToro, and invest using Ameritrade. If you would li

There wasn't much to add to yesterday's action.  The S&P closed with an indecisive doji, but given the context it was really a non-day with no advantage to either bulls or bears.

It was a generally quiet day for markets with Small Caps feeling most of the pressure. The S&P took a quarter percentage loss as it gave back a small amount of last week's gain. There was no technical change on this loss. Nothing to be too concerned about.

The bright start to the year continued as bulls were able to maintain buying pressure for three of the four first trading days of the year. The S&P closed near the highs of 2016 with all key moving averages in upward trends. The MACD is still holding to a 'sell' trigger, but this is heading towards a new 'buy' trigger, which given the strong position relative to the zero line would instead register as a pullback 'buying' opportunity.

End-of-year profit taking has given way to start-of-year buying. The best performer on the day was the Russell 2000. It gained over 1.5% as it broke upside from its consolidation. While the gain did little to reverse the MACD 'sell' trigger it does look like action has kicked off a measured move higher.

2017 opened with a positive start on higher (albeit low) volume accumulation. The late flourish in the market following the election results helped close 2016 on a positive note. So what will 2017 bring? The S&P wasn't able to hold the bulk of Tuesday's gains, but it did reverse the damage from last Friday.  Not surprisingly, recent volume has been very light so it will be important to see how this changes as traders go back to work. The only technical change over the holiday period was a 'sell' in the MACD.