Markets experienced early gains but gave them back by the close of business. Given the mini-rally of the past five days, some of the indices are looking vulnerable to a new round of selling. The S&P finished with a narrow inverted hammer on low volume but at new highs. A move back to the newly accelerated channel is looking favored. The Nasdaq also finished with a narrow doji but wasn't able to make new highs.  It's already close to one channel but looks more likely to reach down to the slower channel. The Russell 2000 had the best of today's action and looks to be attracting buyers at the expense of other indices. Of the lead indices, it looks best positioned to rally as it continues to challenge its 'Bull Trap'. Semiconductors remain the one index which didn't enjoy the recent run of buying but the failure to undercut 1,211 also gives bulls something to work with. If there is a rally over the next few days it may be enough to start a chall

While it was good day for Tech and Large Cap Indices it was a more muddled day for the Russell 2000 and Semiconductor Index. The Russell 2000 wasn't able to enjoy the fruits of what was low key buying experienced in other indices. A second doji in a row gives shorts something to work with as the 'Bull Trap' continues to influence buyers behavior.

While most indices were able to post small gains it was left to the Semiconductor Index to post a small loss; leaving a bearish engulfing pattern at its 50-day MA and an ideal opportunity for shorts to take advantage of the new (intermediate) downward trend. In such a scenario look for stops above the 50-day MA. The flip side, if there is an early push above the 50-day MA then these same short-stops are likely to trigger an acceleration in the rally and bring fresh buyers in a new long trade; a long trade working off oversold conditions.

It was a relatively quiet day for markets so today was more about the working status of potential trade setups. Tech Indices are still holding to a bullish set up with both the Nasdaq and Nasdaq 100 at channel support having enjoyed small gains today.  Stops can go on a loss of today's lows if looking to take advantage of the support test.