Markets gain, but they are hardly convinving.  The Russell 2000 ($IWM) is the best example as it posts its fourth day of doji/spinning top candlesticks - which post a net gain - but do so from a point of indecision. Technicals for the Russell 2000 are still net positive, but I'm expecting a big red candlestick anytime soon. Note the falling buying volume, another reason to lack confidence in the current advance. 

Indices had a confusing day of trading on Friday.  In traditional candlestick terms the S&P, Nasdaq and Russell 2000 ($IWM) all finished with either bullish 'dragonfly' doji or bullish hammer.  The problem is that all of these candlestick appeared off a gap higher from the open instead of a gap lower.  The net effect of this is that we are effectively left with a more neutral finish to the week than could have otherwise have been the case. While the Nasdaq's finish fits with a bullish 'hammer' it also (sort of) engulfed Thursday's trading with its spike low.  Technicals remain net bearish and relative performance to the S&P is in the dog house.  The one positive is the continued defence of former channel resistance - turned support. 

In the end, it was 200-day MA resistance for the Russell 2000, and the October swing high of 11,200 in the Nasdaq, which proved to be the step-too-far for the rally in the indices. In all cases, indices are now moving back to the point rallies started in October.  In the case of the S&P, the rally managed to close above the 50-day MA before sellers kicked it back from whence it came.  Currently, it's leaning on the 20-day MA with a non-too convincing - neutral - 'spinning top' candlestick.  Momentum is a long way from oversold (and stochastics [39,1] turned from the midline - a typical reversal in a bear market), so it's hard to see today's trading at a point where you can be a buyer. 

After Friday's strong finish there was the potential for bears to stew over the weekend and attack on Monday, and although sellers were able to do some damage - they weren't able to do more than they did at the open. Given that, the Russell 2000 was able to protect itself from the sellers and managed to make a modest gain as it looks ready to challenge its 200-day MA, perhaps as soon as tomorrow. Technicals are net bullish and relative performance has accelerated in the latter part of the month to its peers.

The volume was light on Friday, but gains were enough to negate Thursday's selling.  Markets have already recovered from the break of the loss of June's swing low, and are now looking at a challenge of 50-day MAs.  The Nasdaq is on a 'buy' trigger, but all other technicals are bearish.  Relative performance losses have accelerated, but the broader picture is more bullish, and On-Balance-Volume is close to a new 'buy' trigger. The double October swing high is still there as resistance, but a close above 11,210 would confirm a sequence of higher highs and higher lows. 

It was a mixed day. Much of what happened started positively, but by the close of business, indices were back where they started the day.  The S&P 'gravestone' doji could be considered a bearish 'harami cross', with stochastics [39,1] on the mid-line and standard [14,3] stochastics overbought. if this proves to be true (and bearish 'harami crosses' tend to be reliable reversal patterns), then tomorrow will be a down day.  Add to this, On-Balance-Volume has returned to a 'sell' trigger, with a sharp loss in relative performance to the S&P.

A good start to the week has indices ready to sweep past the most recent swing high from October 5th.  The first index to attempt this will be the S&P.  It's ideally positioned to make that break tomorrow, which would not only take out the swing high, but also break through declining resistance from the August high.  There is a clue as to what may happen here.