The 'most hated' rally, started in 2009, suffered a potential setback with wide range (neutral) candlesticks across markets. How much the UK election result played on this remains to be seen but Friday's trading marked a day of chaos.  Shorts should not be jumping so much for joy. The rally for the past few months has taken indices to a point where a 25% loss - a definition for a bear market - would only see tests of February's lows in 2016 (and nowhere near a test of 2009 lows or anything later). The S&P experienced higher volume distribution as the day closed with a 'spinning top'. Next week will be about consolidating the action in the context of Friday's close and holding the breakout. Technicals remain positive

There wasn't much to attract interest but the Russell 2000 managed to stick its head above the parapet with a solid gain.  The Russell 2000 was left just shy of challenging trading range resistance.  Other indices are trading in a tight range which builds tension for a reactionary move; given what's happened in Small Caps, a breakout higher is perhaps favored. The Russell 2000 cleared inner resistance of the 'bear trap' and brought the index to trading range resistance. Tomorrow, watch for a consolidation at 1,420 before the Russell 2000 pushes higher.

Today was the perfect day for bulls looking for buying opportunities. Markets exhibited small bullish 'hammers' as part of a 3-day pullback; collectively shaping up as bullish flags. As an added bonus, volume rose to register an accumulation day. The S&P pullback will be confirmed on a move above 2,435 with a stop on a loss of 2,425.

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.