A good day for bulls delivered a breakout in the Dow Jones Industrials Index and across the board accumulation for other indices Action in the Dow Jones Index delivered not just a break of declining resistance but a close above the 200-day MA. Technicals are net positive but not yet overbought.

It seems every market gain is soon followed by a loss (and a potential shorting opportunity), but each time shorts are left hung out to dry. Will this time be different? Probably not, but whipsaw trades remain a key risk after a bounce like the one we have seen. Of the low hanging fruit, we have a Dow Jones Index which has reversed off resistance (and 200-day MA), albeit with a small bullish hammer (the significance of which is reduced as the index is overbought on near term stochastics - but not on an intermediate time frame). The 50-day MA is available to use as support, and relative performance is positive versus the Nasdaq 100. While action suggests this will break through its 200-day MA, the short position has a small edge until proven otherwise.

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