The gap down at the start of the week is still the dominant pattern but today helped stabilize the losses. Indices did have support to work with, the Dow in particular is still trading inside its channel. The Dow has been chugging along channel support with today's buying registering as accumulation. The MACD is on a trigger 'sell' along with a 'sell' trigger in the ADX.

Well, it has been two days since the last post and yesterday's open started with a big gap down which started the day for the S&P below channel support (and the prospective buying opportunity), but has now left the Nasdaq in a possible buying opportunity. For the S&P, the gap down may have been enough for value buyers but the break effectively kills the rally and likely starts a new sideways consolidation. The MACD trigger 'sell' expanded with a new 'sell' trigger in the ADX.

Not since September of last year have we seen a selling day like Friday's. Hardest hit of the indices was the Russell 2000 as it broke below support of its rising channel. It remains above breakout support of $158s, but with new 'sell' triggers for the MACD, On-Balance-Volume and ADX. Relative performance versus the Nasdaq has been in freefall since mid-December and Friday's action didn't help. However, the weekly chart is the one to watch if you are holding long, and with 20- and 50-week MAs running closely aligned there is support to work with.

A slow start after MLK day led to minor losses for markets. Technicals remain positive with the S&P enjoying a sharp uptick against Small Caps which experienced a loss (although not a great loss).  Indices remain defined inside existing rising channels, or in the case of the Nasdaq, just above. The lack of a significant loss in the S&P helped keep the indices inside their narrow channel.