Higher Volume distribution took hold in indices but there was no significant point loss to go with the selling. S&P gains posted late last week are holding while breakout buyers have yet to feel the pressure of this week's losses. The surge in S&P relative performance has weakened but hasn't yet pushed a 'sell' trigger.

Two days of gains have pushed markets beyond their breakout levels and new closing highs. Volume has not been spectacular, but shareholders will not be complaining. Shorts will be out or left holding big losses. The Russell 2000 had the best of the action as it negated the 'bear flag' in a move which now looks destined to challenge of 1,425. The MACD is building on its 'buy' trigger but relative performance against the Nasdaq could do with a kicker to mark the return of Small Cap leadership.

After a couple of weeks of light trading volume picked up as seller returned to markets. However, sellers were unable to reverse market breakouts. The S&P tagged 2,403 at the low of today, but recovered to leave it halfway between recent highs and 2,400. Technicals are net bullish with the MACD slowly building on its recent 'buy' trigger.

There was little of note today with the exception of the Russell 2000. The blog headline is a bit to click-bait, but in relative terms, the Russell 2000 suffered the largest loss. The Russell 2000 took sa 0.8% hit as it bounced away from lead moving averages. The index is still caught in a larger trading range which weakens the significance of today's selling - but in a day of little change, today's Small Caps action gathered attention.

Memorial weekend brought with it holiday style trading on Friday. It was positive finish for bulls who were able to maintain and in some cases, build on, gains from earlier in the week Best of the action came in the Semiconductor Index which finished with a new closing high. The rally from April brought with it an acceleration in pace, comparable to the latter part of 2016.  Relative performance against the Nasdaq 100 hasn't breached resistance, but it's very close. Semiconductors spent a long time in the doldrums after the 2000 peak, but they are finding their groove now.

While I expected the Dow Jones to be the breakout flyer, instead it was the S&P which led the charge on higher volume accumulation.  Technicals are all in the green with a return of the MACD trigger 'buy'.

The S&P is only a short step away from confirming new highs, but today's action will have kept shorts wary with the risk of whipsaw high. A simple push above 2,406 could deliver an acceleration higher. The one disappointment is the light volume.