Friday's action was good for what didn't happen. Trading was muted, with action trading inside very narrow ranges, different to what had happened the day before. The S&P 500 probably came out the best of it as Friday's action held Thursday's break of 2115. Watch Monday's premarket action closely. Assuming no damage in the Europe or Asian session there is a good chance bulls could be let off the shackles. Ideally, one would want an open above 2115 to set the tone.
The NASDAQ hasn't yet mounted a challenge of' 5,120. Bears looking for a reversal head-and-shoulder pattern would not want to see a push above 5,063 as this would negate the pattern. Bulls will have the MACD trigger 'buy' to work off.
The Russell 2000 had already delivered a clear channel breakout, but Friday's trading marked a rejection of the 50-day MA. However, bulls also got a MACD trigger 'buy', which gives a fresh opportunity for a new moving average challenge.
The Philadelphia Semiconductor Index is working off converged support of 704, 50-day MA and declining resistance. It's nicely set for Monday.
Next week could be the time bulls finally take indices out of their 4-month trading ranges and keep this six year rally ticking.