There were modest gains across the indices as markets digested last week's losses. The 'bull trap' and gap down remains a major concern for the S&P as today's buying only made a small indent into those losses. Volume was lighter as On-Balance-Volume looks ready to whipsaw back into a 'buy' signal.

Based on recent price action Friday's loss was relatively light, but it could prove to be of greater significance in the weeks ahead.  It chalked two bearish markers in confirming a 'bull trap' and creating a gap down in the process. Friday didn't register as a distribution day although there was a bearish cross in On-Balance-Volume to mark a shift back in favor of sellers. Ironically, it's making a relative improvement gain against Small Caps. Is this the time profit takers take over in a race to the bottom?

The Market has finally noticed the value in Small Caps and added nearly 5% in a drive towards its 200-day MA. The index is still lagging a long way behind the Nasdaq and S&P but has at least enjoyed a relative performance advantage.

For the first time during this crash, Small Caps ($IWM) have begun to swing into a position of leadership with a breakout. The April 'bull trap' in this index has been negated, but the index now finds itself up against its 50-day MA. Despite the relative performance gain the index hasn't turned net positive in technicals with stochastics still below the bullish line.