Large Caps continued to press Thursday's advantage with gains to send indices towards recent swing highs. The S&P remains on course to reach channel resistance and post new highs with technicals net bullish and relative performance in the ascendancy against Small Caps.

Just when it looks like Shorts have a handle on this market bulls go and Make America Great Again.  Market rallies undo much of the weakness over the last three days and give bulls something to play with. Although bulls are not yet out of the woods. The Semiconductor Index was my bearish choice for today and the index logged a 1% gain. While it didn't reverse all of its 'bull trap' it did push markets away from its 200-day MA; action since last June has been scrappy but it has managed to edge a little higher each day. I would still edge in favor of shorts but another day like today would end this and set up a challenge of triangle resistance.

While today ended as a day for bulls to take satisfaction, there is still plenty of work to do to get indices back to the multi-year highs which were challenged last week. The losses endured on Friday and Monday were enough to drive technical breaks, but not all of these were undone by today's buying. The S&P managed to retain its breakout as buyers looked to defend its 50-day MA. Volume climbed to register an accumulation day as supporting technicals remained in the green.

Lots of divergences in play across the markets. Start with the positives, the Semiconductor Index edged above resistance in what looks like breakout. It lost ground Friday which suggests it may still require a redrawing of resistance if this is some form of rising channel. However, in the near term, this looks like a genuine breakout and look for a move to triangle resistance.

After weeks of relatively tight trading markets stretched their legs today. The S&P took advantage of yesterday's gap to squeeze shorts on higher volume accumulation. Today's gain hasn't quite tagged channel resistance but did register as accumulation. Technicals are all bullish along with an acceleration in relative performance over Small Caps. Large Caps to lead into the Fall?

While bulls shrugged off the latest Trump missive there was no reversal in markets to change their prior directions with one exception. The Semiconductor Index is still clinging on to 1,380 resistance but today's close posted a bullish hammer with a spike low at the 50-day MA. Expectations for tomorrow would be a rally break of the latter resistance and a push to triangle resistance.

Friday didn't bring a change in markets as the S&P, Nasdaq and Nasdaq 100 held their breakouts while the S&P struggled to negate its double top. The S&P lost a little ground but remains well above breakout support. The biggest loss was seen in relative performance but only because the index has suffered an extended period of relative decline and had only begun to reverse that.