Before my vacation I had noted three indices to watch  undergoing support tests: Semiconductors, Nasdaq and Dow Jones Industrial Average had all presented buying opportunities. However, I had also thought these rallies would stall out when they got back to resistance - this did not prove to be the case.  With the exception of the Semiconductor Index (which did rally), all indices managed to post new highs for the summer. The Semiconductor Index is the one which may present a profit taking opportunity (or a potential shorting chance) as it approaches triangle resistance.  Given both the Nasdaq and Nasdaq 100 are at new multi-year highs and technicals for the Semiconductor Index are net bullish - and this rally begun from a 'bear trap' - chances are this will continue beyond 1,410 and go to challenge 1,440 and likely more.

On holidays until September 1st. How will the market be when I return? If you haven’t already  Follow Me on Twitter Dr. Declan Fallon is a blogger who trades for education on eToro and can be copied for free. Investments are held in a pension fund as buy-and-hold. .

Sellers returned today as bulls and bears tussle for control. With the constant back-and-forth, the short-term moves become more difficult to define, making it necessary to take a step back and look at the big picture. The Semiconductor Index is at one such juncture. The index finished the day at rising support defined by the April and July swing lows. Wednesday's spike low illustrates underlying demand - offering a buying opportunity; stops on a loss of 1,321. The initial target is 1,420 but a larger breakout could deliver a lot more. The only negative on the day was the net bearish turn in technicals as intermediate-term stochastics [39,1] crossed below the mid-line into bearish territory.  However, a rally to triangle resistance would likely reverse this.

Buyers made a strong defense of the Russell 2000 as yesterday's losses were reversed - and then some. However, there is still some 2-3 days worth of buying required before it can be said to be challenging new highs. Weak shorts will have covered today but more staunch shorts will be feeling nervous; a move above 1,710 is a cover of any short.

Markets tilted in favour of bears although there was no expansion on the selling action from Friday. The S&P undercut the 20-day MA but volume was down a little on Fridays. However, the selling did come with a fresh 'sell' trigger in On-Balance-Volume and relative performance against Small Caps is teetering towards a new 'sell' trigger.

Sellers closed the week out but it was Large Caps which experienced the most significant loss on the day. The S&P gapped away from the channel resistance tag reversal. The index was left at its 20-day MA as it appears to be shaping another move to channel support. This was supported by a MACD trigger 'sell', a 'sell' trigger in -DI/+DI and higher volume distribution. 

There wasn't a whole lot to today's action except for further gains in the Semiconductor Index. Relative performance is positive and technicals are all in the green.