Sellers had managed to push indices back to support levels where buyers are looking to make a stand.   The S&P is down at the June swing low which is also the 50-day MA. Technicals are a mix of bullish and bearish signals; the index is still underperforming against Small Caps. Selling volume in recent weeks has sided heavily with bears but On-Balance-Volume hasn't yet switched to a 'sell' trigger.  This is as good as place as any to stage a bounce and take on a low risk trade. 

The week ended for markets with sellers in control. The damage was sufficient to put markets on warning for a bearish reversal - but the last such attempt in early June was quickly reversed by buyers; will this time be different? The Nasdaq lost its breakout with a drop below 10,000 and support of 9,800. Part of this move also undercut its 20-day MA. Volume rose in confirmed distribution in one of the heaviest trading days of the year not attributable to options expiration. An effective flat-lined MACD switched to a 'sell' trigger, so this is vulnerable to whipsaw as other technicals remain firmly bullish. 

The Nasdaq had been the lead index as it posted new all-time (post-Covid19) highs, but today's selling followed yesterday's bearish gravestone doji; collectively, it looks like a bearish evening star. The only thing remaining is breakout support, which has yet to be violated. Selling volume was down on yesterday's buying so it wasn't all in bears favor.

Traders had a weekend to stew over Friday's losses and a weak open on global markets could have set a more negative tone. However, this proved not to be the case.  The S&P staged a small rally from its 20-day MA. The rally hasn't yet undone the 'sell' trigger in the MACD but the sequence over the last five days has mapped a consolidation handle which has the potential to challenge and get past 3,200. 

Bulls weren't able to close out the week on a high as Friday's candlestick was a mix of a bearish engulfing pattern or black candlestick (lower close to open, but close above prior day's close). In the case of the Nasdaq, the gap closed but the 'bull trap' remains unchallenged.  The Nasdaq closed with a 'bearish' black candlestick on higher volume. The MACD trigger 'sell' remains but other technicals are positive. 

The S&P experienced a narrow loss as it traded inside yesterday's doji, which was within Thursday's gap down. The MACD is still on a 'sell' trigger but it returned to a relative advantage against the Russell 2000, which would suggest money flowing back to defensive issues - although trading volume was light.

Friday's defensive action was followed by Monday's buying, with many indices defending 20-day MA support. The profit taking from Thursday is still in the mix but the panic selling from February hasn't materialized. Indices finished with possible bullish engulfing patterns, but the lack of oversold conditions weakens the signal.  The S&P didn't reverse the 'sell' triggers in the MACD and ADX and left a new underperformance signal relative to the Russell 2000.