There wasn't a whole lot to Friday's action but two indices which were struggling a little did benefit. The Semiconductor Index gained 1% as it bounced strongly off the bullish 'morning star'. The consolidation triangle looks to be shifting to another pattern but resistance from triangle swing highs remains in effect and is the next challenge of the index.  Technicals are net bearish and relative performance, while recovering, hasn't yet undone the most recent 'sell' trigger.

Thursday offered a bright start for markets but the Russell 2000 struggled to enjoy the fruits and by market close things were looking a little more somber. Best of the action belonged to Large Caps but it was Tech indices which started the day brightest. The Semiconductor Index gapped higher and returned inside the consolidation triangle. Had it closed near the day's highs it would have ranked as a bullish 'morning star' candlestick pattern but instead it registers as a 'bear trap'. However, this wasn't enough to stop a net turn in technicals in favour of bears. A loss tomorrow would put the 'bear trap' under threat

It has been a tricky last few days. The bounce in the Russell 2000 off the 20-day MA and key support of 1,705 has struggled to follow through on what should have been a strong support test.  Technicals are a bit of a mixed bag with 'sell' triggers in +DI/-DI and MACD. Today's 'doji/hammer' is perhaps the last chance saloon to see something happen here; a lower close Thursday will likely see a break of 1,705.

Bulls stuck around for another day as triangle support held in the Semiconductor Index along with the Nasdaq. The Semiconductor Index returned above the 20-day MA but it came with MACD trigger 'sell'. Relative strength vs Tech Indices flatlined from July but is attempting a turn higher, albeit quite erratically. 

Thursday's selling had left indices vulnerable to further losses and support breaks, not to mention a weekend of angst but indices held on - ready for a fresh start next week. The Semiconductor Index experienced the greatest loss Friday but the consolidation triangle is approaching its apex and if there is to a break (upside or down) then it's going to have to happen soon or the pattern will trade out flat. Friday did see a successful support test and a buying/short covering opportunity.

The Nasdaq experienced its second day of losses to bring it back down to 2018 channel support. This looks to be a critical time for the index given the convergence with the 20-day MA. There was a MACD trigger 'sell' and -DI/+DI 'sell' too to compound today's selling. On-Balance-Volume will turn negative tomorrow if there is another down day. From a trade perspective, buying support would look to be the favoured option but given this has come from a failed upside break from the wedge (inside the larger channel) the likelihood for a break lower and a move to test the 200-day MA would perhaps be favoured. Where longs will edge it is if there is a gap lower but a subsequent move back inside the channel.

There wasn't a whole lot to work with Tuesday. The only index showing potential was the Semiconductor Index; it managed to clear congestion from the last four days as it tagged resistance. While the resistance tag may be viewed as a shorting opportunity the move looks like one to drive a break of the triangle.