Friday belonged to Bears as sellers finished the week in control but bulls still have support to lean on in the shape of moving averages. The S&P is leaning on the 50-day MA with 'sell' triggers in the MACD, On-Balance-Volume, and ADX, although relative performance ticked up against the Russell 2000. Volume rose in confirmed distribution. Monday is a fresh chance for bulls to recover the losses.

After yesterday's losses today was the turn of moving averages to step in as support. Action for the last couple of days does look like washout trading to shake out weak-holding longs The Russell 2000 suffered the most on Tuesday but did well to attract buyers at its converged 50-day and 20-day MAs. While today's buying was good it wasn't enough to prevent a MACD trigger 'sell'.

There wasn't a whole lot to today's action aside from reaffirming the consolidation action in lead indices. Trading volume returned to normal after Friday's Triple Witching. For the S&P there was a bullish cross between the 50-day MA and 20-day MA as the narrow consolidation near resistance stretched into a second week.

Friday's witching volume came with resistance selling, but the extent of the damage remains to be seen for most indices as range trading remains satisfied. Biggest damage was done to the Semiconductor Index as the challenge of the 'bull' trap failed, broadening range resistance to 1,625. It could be another few weeks before we talking breakout here.

It's looking ever more likely that current consolidations experienced by markets will resolve to the upside with new breakouts. However, markets are taking their time before doing so. The S&P closed with a 'gravestone' doji just below 3,025 resistance. Typically, this is a bearish candlestick but given volume was significantly lighter then it's more likely to become part of a consolidation; one, which leads to an eventual breakout.

Another good day for Semiconductors after the attack on the 'bull trap' found support at breakout support; this will help the Nasdaq and Nasdaq 100. There was a 'sell' trigger in the CCI, but other technicals are bullish and relative performance is very strong. This is also bullish for the economy.

While Small Caps stole the show last week it may be the time for Large Caps to step up to the plate. Leading the charge is the S&P. The index is sitting just below resistance after ending the week just shy of a break of 3,025. Technicals are net bullish, which should help. Despite two sequential doji, volume was lower on the down day, which is bullish.