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.

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.