The Nasdaq 100 is the one index which looks ready to break higher as it pressures the August 'bull trap'. While Friday ranked as higher volume selling - technical distribution - the loss was small and the index continues to push against resistance.  Technicals are mixed with a 'buy' trigger in the MACD offset a weak 'sell' in On-Balance-Volume. The main positive is the surge in relative performance against the Russell 2000.

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.