That one-day bounce in the Russell 2000 last week is looking like a long time ago as today finished with a cut below its 50-day MA. Technicals are fading fast as relative performance begun a cliff fall. While other indices haven't shown this same level of weakness it's a worrying start as Small Caps typically lead. The slower channel remains intact so it's not a full on reversal yet.

When I checked the market earlier today it was looking like there was going to be an ugly sell-off but this didn't materialize.  However, there was a bearish evening star in the Dow Jones Industrial Average which may suggest the start of a topping process but while there was some damage to technicals it wasn't enough to suggest this is the top.

Expiration volume clouded Friday's selling but there wasn't a whole lot to report on the end-of-week close. Last week's surge in the Dow came to a halt with Friday's doji; a doji at resistance would offer a shorting opportunity but it didn't make it there (channel resistance). Technicals are all positive and aren't showing any negative divergence - another reason to be cautious.  This is a watch-and-wait, a move to channel resistance still looks favored.

Solid gains across the board but it was holders of Dow Jones stocks which had the best of the action, continuing a sequence of gains triggered earlier this week.  The Dow Jones Industrial Average will soon be dealing with channel resistance but not until Friday if not early next week. Technials are good. The benefit of this strength was seen elsewhere too