A solid start to the week, albeit on light volume.  Last week saw the bullish cross of the 200-day MA in the Russell 2000.  This week started with the S&P fast approaching its 200-day MA and could be testing it tomorrow.  The S&P is also on the verge of a fresh cross in On-Balance-Volume, although the relative performance of the index to its peers took a step in the other direction - but this shouldn't distract what is positive, bullish action. 

Friday was a solid day for indices with the Russell 2000 ($IWM) doing enough to push through its 200-day MA despite Thursday's bearish candlestick. Small Cap trading volume remained seasonally light, but Friday's buying was enough to retain the uptick in On-Balance-Volume and the relative performance advantage over both the S&P and Nasdaq.  Technicals are net positive as a result.  Aside from the lack of a meaningful pullback (test of support), this is solid action for the index.

After Monday's reversal candlesticks there were risks of 'bull traps' for the Nasdaq and Russell 2000, but today's gains have managed to negate not just the 'bull trap' risk, but also the bearish inverse hammer and doji from Monday.  In addition, the S&P managed to register a breakout.  The breakout in the S&P came on higher volume accumulation, although On-Balance-Volume remains on a 'sell' trigger.  The index has also accelerated its underperformance relative to the Russell 2000 - although this is more bullish than bearish for the broader market. 

It was a mixed day for indices with the first indication of a top for the current advance with reversal candlesticks coming into play off opening gaps in markets. The Russell 2000 is looking the most vulnerable as it finally manages to break past the June swing high. With the 'inverse hammer' we have the risk of a possible gap down Tuesday, which would result in an 'evening star' and a likely "bull trap" - feeding into the likelihood of a larger sell-off.