No follow through, but healthy action saw markets hang on to yesterday’s gains. Volume declined to keep sellers at bay.

The S&P is still working off a ‘sell’ trigger in the MACD and On-Balance-Volume. However, the index remains above 20-day and 200-day MAs.

It was a similar story for the Nasdaq with ‘sell’ triggers in On-Balance-Volume and the MACD. On-Balance-Volume is on the verge of a ‘buy’ trigger.

The Russell 2000 lost the most ground on the day, but it remains above the 50-day MA. The relative performance against the Nasdaq continued to lose ground, which isn’t so good. The broader market needs Small Caps participation to drive long term gains.  A push above 1,200 is needed sooner rather than later.

Today offered a weak start, but this didn’t develop into broader weakness. Tomorrow offers a good chance to push on and to further squeeze shorts.