After some disappointing after hour earnings report we may see this market bounce move towards the next step, the confirmation test of the lows.  Will markets confirm the January lows as a swing low, or will markets evolve into some broader measured move lower? In the case of the Nasdaq we had a narrow 'black' candlestick at the top of the bounce - and at 20-day MA resistance. Bulls can take some comfort with the MACD trigger and On-Balance-Volume 'buy' signals, although the former occurred well below the bullish zero line. A move down would not be surprising - the question is whether it will go all the way back to its 200-day MA.

Buyers stewed over the weekend and started Monday with a period of buying across lead inside.  Buying volume was down on yesterday's (and recent buying) and given the Nasdaq gained over 3% it was a little disappointing not to see volume match the large percentage gain, although things were a little better for the S&P.  For the Nasdaq, there was no fresh 'buy' signals, although On-Balance-Volume is on the verge of a new trigger. 

Friday was a good day for bulls and a nice finish to the week.  Best of the action probably belonged to the Nasdaq as it bounced off the 200-day MA. The index closed above Thursday's open in what is shaping up as a week long swing low. Technicals are net bearish with relative performance accelerating away from the index, but if the Nasdaq can build from Friday it will attract buyers and improve the technical picture. 

Monday's buying should have followed with gaps higher and the start of a recovery rally.  Instead, we had no gap, a tentative bounce, and now a move into the spike lows of Monday - rarely a good sign for bulls. The Nasdaq is easing back to its 200-day MA for a second test in less than a week.  A second test over such a short period is rarely a good thing and despite registered accumulation it's hard to see how accelerating technical weakness could deliver a bounce now.