There wasn't a whole lot to Friday except that any shorts will have been squeezed by the morning gap. Luckily for them, there wasn't any follow through but there was higher volume accumulation; suggesting there are more bulls than bears - even after a +10% gain from lows.  Should markets undercut the nascent swing low from last Wednesday then there is still a good chance buyers will step in to defend the December low. The S&P didn't do a whole lot outside of the morning gap but neither was there any real change in supporting technicals. Assume bulls have control unless there is a close below 2,600.

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.