Market action remained somewhat low key with only the Nasdaq trading any action of note. The Nasdaq is fast approaching  next resistance level of the February(!) breakdown gap - this will probably the last point of attack for shorts as going beyond this will fill (and therefore, negate) the breakdown gap. Trading volume for the index was well down on yesterday. 

Do we have a resolution to the trading range with the Nasdaq now posting a new swing high for the March rally? Must be the 20 million job losses was considered better than the 22 million expected :(  Hard to fathom why the gains, but its during times of doubt when substantial money remains on the sidelines that a gradual return to the market can fuel these rallies. Remember, trading volume from the middle of March to the end of that month was substantial and anyone who bought during that period will be sitting on profit and not likely keen to take profits - keeping supply tight.  Just to add to Friday's breakout in the Nasdaq, volume climbed to mark accumulation. 

Indices had looked ready to break beyond last week's swing highs, but in the end they weren't able to push through but the damage was minimal.  The S&P had a small bearish engulfing pattern to yesterday's doji. On a positive front, yesterday's action closed the breakdown gap even if it ultimately wasn't able to challenge the 'bull trap'. 

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.