Small Caps again took the brunt of the selling as Shorts took advantage of yesterday's small rally back to former support (turned resistance) to enter positions. With the 'bull trap' in full effect, the next target down for the index is 1,308. Of supporting technicals, only Stochastics [39,1] is left to break its bullish alignment,

No need to say much for today as very little happened in the market. The Russell 2000 attempted to undo yesterday's breakdown, but hadn't recovered enough by end of day to negate it.

In the end, it was Theresa May and not Trump which saw the Russell 2000 cut through support and confirm the earlier 'bull trap'.  This change coincided with a 'sell' trigger in +DI/-DI. Only stochastics are hanging on to its 'buy' signal.

There was no wiggle room for the index heading into Friday as it managed to claw back the 'breakdown'. It went one step better and posted one of the better performances on Friday.  While the index has come back from support, it hasn't yet challenged the consolidation 'bull trap' - but look for this on Monday.