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.

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

The Dow was the lead index on the day as it marked a new closing high and kept the rally on course to test its accelerated upper channel. Technicals are bullish with the exception of the MACD which is on the verge of a new 'buy' trigger.

Tech and Small Caps are starting to slip from their summer advances. This may be a simple change in pace but longs for these indices will be looking to 50-day MAs to attract buyers; if these are swept it will leave support lacking until July swing lows and/or 200-day MAs. The Nasdaq fell outside of its rising channel after three prior successes. Volume climbed to register as distribution.