It was looking like an day for sellers to take control but while it was a down day with heavy volume disstribution, there wasn't any significant point loss to go with the selling. Losses in the S&P occurred on significant volume but without any major change in supporting technicals or price. With bulls looking for a crash on any sign of weakness, it`s going to be hard to see a crash occurring as markets continue to enjoy gains on the back of overbought conditions. Crashes do not occur when markets are overbought but when they are oversold, and markets are still a long way from this. 

Hard to know what to make of today's action. For Large Cap and Tech Indices there was a pick up in the rate of buying, but the volume to go with the buying was below average - even allowing for holiday (Covid19 holiday) trading. The Russell 2000 didn't manage to post a gain but didn't suffer too much damage. The S&P has moved into the 15% zone and is close to the 10% range of historic overbought price relative to its 200-day MA dating back to 1950.  The last time it was this overbought was February 2020, and before that it was January 2018; both times soon followed by periods of downside (back to the 200-day MA at the very least). Supporting technicals, including relative performance to the Nasdaq and Russell 2000, are strongly moving in bulls favor so we have very little in the way of early warning that weakness is coming so we should pay attention to relative performance to the 200-day MA metric.

It was left to Large Caps to do the heavy lifting today. The Dow Jones Index was today's winner as it added over 1% on heavy volume accumulation. The index is still experiencing relative underperformance to Tech indices, but the gain marks a new swing high and an opportunity for momentum traders to get involved with some more defensive stocks.

Things tick along in markets with little fanfare; the Nasdaq and S&P both registered gains, but the Russell 2000 took a small loss - but not enough to reverse the breakout. The small loss in the Russell 2000 also came with registered distribution, but not overall volume was light - so probably not too damaging. To compound the weakness there were 'sell' triggers in the MACD and On-Balance-Volume to go with the ongoing underperformance of the index relative to both the S&P and Nasdaq.