Bulls were able to deliver across the board gains yesterday, helping to position Monday's action as a swing low. Weakness at this point would offer itself as a buying opportunity, but markets wouldn't tolerate more than a couple of days of losses if they were to go down this route.
The S&P is at resistance of the prior swing low and the 20-day MA, but is yesterday's action looking good for an upside break today? Technicals are firmly in the red and need more than yesterday's gain to fix them.
The NASDAQ did yesterday what the S&P could do today. Supply issues are likely to kick in at 5,900, but a bullish On-Balance-Volume and a bearish MACD means one of these signals has to give.
The Russell 2000 also staged a good recovery yesterday to generate a 'bear trap' of its own. There is converged resistance of 20-day and 50-day MAs to consider, but if it can get above this then it has a free shot to challenge 1,414.
For today, watch for weakness in the first half hour of trading. This could be the pullback buying opportunity of this swing low. However, if markets remain weak through the day, then it may suggest a 'dead cat' bounce.