Today wasn't the day but every time we get a possible sell/short signal, buyers come in to halt the sell-off.  Tomorrow (or Monday) could be the day markets rally to new swing highs (and hit existing short stops) but action over the last couple of days looked more bullish than anything else. The Russell 2000 was able to dig in at its 50-day MA, with the 20-day MA fast approaching to lend support. Technicals are net bullish but it's price action which looks like it will deliver. However, relative performance is ahead of its peers but it's not strengthening in a manner to suggest it will lead.  Also, its trading just below resistance.. So, look for gain, but if there is an undercut of Thursday's open it could get ugly quick. The S&P finished with a nice inside day, which itself is a swing trade opportunity (trade break of today's high/low with a stop on the flip side of the range). The 50-day MA is there for support and volume even edged a little higher to m

After two short plays were cut from under Large Cap traders it's now the turn of Small Caps and Tech indices to take a second bite of the cherry. In the case of Tech indices, there is resistance to work with too. The Russell 2000 finished the day with a 'bull trap', reversing Friday's breakout. This is a fresh shorting opportunity with a stop above 1,487. Technicals are bullish so there is no suggestive weakness which may guide to further downside so keep stops tight.  The last stop was whipped out so without clear resistance there is a chance this could follow with another whipsaw signal.

Friday's second day of gains put another squeeze on shorts. Resistance was handily broken on higher volume accumulation leaving markets in an area of indecision with neither shorts nor longs holding a clear advantage. However, each advance strengthens the December swing low as a major low - opening up the next retest as a buying opportunity. The S&P pulled away from congestion on net bullish technicals. Next upside target is the 200-day MA but the index is underperforming against the Russell 2000.

Yesterday's swing trade will have stopped out the aggressive short trades at the narrow doji, where the doji range was used as a stop. Shorts using the 50-day MA as a stop will still have a little room left to play with. Those looking for a new shorting opportunity may use today's doji as the entry trigger; shorting loss of doji low with stop on break of doji high (or a long trade on the reverse break). The aforementioned trade looks clearest on the S&P where it edged above resistance but not enough to break beyond the 50-day MA; I have marked a second (short) entry signal but if it closes above the 50-day MA then the last chance saloon for these trades will be done. It's a similar picture for the Dow Industrials Somewhat ironically, the Semiconductors might have the best shorting play; we have a close near the low of the day after peaking last week. The index is above the 50-day MA but it's not looking like it will stay there much longer. There is an