Friday's action didn't bring about the bounce I would have liked after Thursday's picture-perfect defenses of lead moving averages or support. The S&P closed with a bearish black candlestick on a spike high above the 50-day MA. Volume climbed in accumulation as On-Balance-Volume triggered a 'buy' signal. I would see this as a bearish close and would look for downside Monday; potentially playing for a test of the 200-day MA

It was not particularly pretty but it was effective. There was no further drive lower but traders were happy to step in to defend moving averages; those who made the leap were rewarded with an attractive risk:reward opportunity.

Yesterday's respite didn't lead to a bounce, instead, sellers took another swipe at the markets. The worst performer was the Semiconductor Index as it gave up near 2.5% on the day. Today's selling undercut the trendline and finished on its 200-day MA. Technicals are all net bearish but with intermediate stochastics not oversold there is still an opportunity for further losses. Relative performance also expanded on its losses.  The 200-day MA may offer enough traction for a bounce, although given the nature of the sell-off some 'oversell' can be expected.                                                                                                                                                                 

It was worse than expected day for Semiconductors as a sizable gap down and run close to the 200-day MA drove it through many potential support levels. Shorts will be looking to attack the next bounce with a close of today's morning gap the first short entry opportunity (for those who didn't take the 'tweezer top' short).