Today belonged to the Nasdaq with Apple and Amazon key contributors to these gains. The index is now challenging the 'bull trap' after recent struggles. Again, we are likely looking at sideways action, but if there is follow through over the coming days it will mark a confirmed follow through for the index.

Markets threatened a rout after sellers struck at Tuesday's open, but a rally after the hour managed to right the ship and by the close of business lead markets where showing "dragonfly doji" candlesticks. A dragonfly doji is typically a bullish reversal candlestick, but only in the context of an oversold market which is not the case here. Of course, later today we have a slew of economic data that could deliver dramatic swings in the market (both ways), so there is a certain level of pent-up tension leading into this. With that in mind, we have a Russell 2000 ($IWM) that continues to feel the squeeze as the ascending triangle trendline squeezes into breakout resistance and the March "bull trap". Trading volume has been very tepid over the last few days - typical of a consolidation - so look for this to pick up when support or resistance is broken.

If there is a swing trade with plenty of tension ready to snap, it's in the Russell 2000 ($IWM). The index looks poised to either negate the late March 'bull trap', or crack below ascending triangle support with a big, red candlestick. Technicals still favor bulls, although the earlier MACD trigger 'sell' is a bit of a concern; note, MACD 'sell' triggers that occur above the MACD zero line are at best, weak 'sell' signals - often a good time to sell covered calls rather than offload a position. On-balance-volume continues to trend higher, and momentum as measured by stochastics is firmly above the 50 mid-level.. If there is a break of the trendline, then look for a move back to $187-189 in a likely continued evolution of a time-based, sideways consolidation. It's a bit of a different story for the Nasdaq as it returns to its breakout price on a move to challenge its 'bull trap'. This index has already broken trendline support, and

There wasn't much volume to Friday's trading, but there was enough to see buyers come in a trendline support in the Russell 2000 ($IWM). There was no technical change to the index with only a whipsaw signal in relative performance against the Nasdaq, although the MACD remains on a prior 'sell' signal.