On a day where losses were recovered and gains lost it was more of the same for indices. The index I'm watching most for leads is the Russell 2000. The Russell 2000 has languished for many months but is showing signs of strength in what could turn out to be a very good second half of the year for the index.  Today saw losses which dropped the index back to rising support (a fresh buying opportunity?) but relative performance lost a little ground. Further losses would keep the index stuck inside its range and therefore be less attractive for buyers.

Heading into the July 4th holiday and indices experienced a mix of reactions.  Large Caps came out relatively unscathed with only a minor reaction to last week's selling. The S&P remains caught inside its tight trading range since the start of June. There is an On-Balance-Volume 'buy' trigger but other indicators like the MACD and ADX are bearish.

I was 'out-of-office' Thursday when bears came in and ripped up Wednesday's recovery gains. Friday saw some indices give up a little more but the damage was done the day before. The Nasdaq effectively confirmed the channel breakdown and kept the June 'bull trap' in play. The 50-day MA was undercut but there is room to recover on Monday. Technicals finished last week net bearish. Friday's action sets up a move to the slower rising trendline.

The last few months have seen Small Caps trade inside a lengthy sideways pattern but its moment in the shade maybe coming to an end.  Today's rally in the Russell 2000 was a picture perfect bounce off rising support.  Not only that, it mounted a strong challenge on the early June 'bull trap'.  This improved strength has been represented by the continued uptick in relative performance against the Nasdaq. The next watch area will be a new MACD trigger 'buy' to coincide with a negation of the 'bull trap'.  Once it gets out of the range it will open up for a new round of speculative investing.