Yesterday saw sellers return with a fresh round of higher volume selling. However, the breakout moves which saw indices clear the congestion of spike highs from last week were not violated so Tuesday's action will not as yet panicked existing longs or buyers of the February swing low to sell just yet. The only exception to this is the Russell 2000 which is struggling to achieve any kind of market leadership. Technicals for the S&P are generally bullish with the index still outperforming the Russell 2000 and the ADX just a small step away from a bullish cross which would be enough to confirm a net bullish picture on the intermediate time frame (i.e. suggesting this rally could go on for another few months).

It was looking to be a struggle after last week's series of 'inverse hammers' had set up what looked like swing highs for indices but these have been cleared by today's gains. In the process of doing so the S&P closed above the 20-day MA with 'buy' signals in the MACD, On-Balance-Volume and Stochastics. Only relative performance is underperforming.

Markets delivered a strong end-of-week close which for many meant a close near spike highs. The strongest finish of the week was delivered by the Nasdaq 100 - it posted a new high as it builds a challenge on the January 'bull trap'. Volume climbed to register an accumulation day. If bulls are in control then the Nasdaq 100 should see some follow through higher; note the strong relative performance against the Russell 2000.

Starting to see evidence that the February bounce in markets is fading. The Dow Jones Industrial Average finished with a 'bull trap' as it ducked below breakout support despite finishing above yesterday's close. Volume dropped as relative performance against tech indices took a marked step lower. Troubling times for the 'flight-to-safety' route.