The last few days have seen the S&P 500 and NASDAQ consolidate their bounce with 'bull flags'. Both markets are coiling in preparation for a follow through move—presumably higher.
In the case of the NASDAQ, we have 'buy' triggers in the MACD, On-Balance-Volume and +DI/-DI - although stochastics are struggling to cross the mid-line. The index is outperforming the S&P which should favor a move higher and a challenge of the 50-day MA.
The S&P is in a similar predicament as the NASDAQ. Its 'bull flag' is getting ready to break declining resistance but is backed by 'buy' triggers in the MACD and On-Balance-Volume. Note, once it does break through it will run into the resistance of its 50-day MA.
The Russell 2000 (via IWM) is not shaping a 'bull flag' and is up against declining resistance. It did manage to negate the bearishness of Monday's 'black' candlestick, but Wednesday's inside day would also be considered a bearish reversal. Look for a loss today but the 20-day MA is there to help should this be the case.
The last few days have seen a back and forth in the development of the consolidation for both the S&P and NASDAQ, and as things stand, neither bull nor bear has the edge. However, we have to consider recent action, and while the longer term action is a decline, the move off the lows looks like it will be the next dominant move. I will be looking for an upside breakout.