There wasn't a whole lot to Monday's action—which is probably a good thing. There was no follow through lower; instead markets traded in a more neutral manner with a set of narrow range doji.
The NASDAQ held on to Friday's lows with a new 'sell' trigger in On-Balance-Volume. I have marked support at 13,885, but where it's out now is probably enough to consider it close enough to just support; a small gain today would be enough to regain this support.
The S&P had made a clean break of support with a close below its 200-day MA on Friday. Yesterday, it finished with a small bullish 'hammer.' The small loss kept existing technicals negative, but not enough to trigger a new 'sell' trigger in the MACD. The S&P continues to underperform relative to the Russell 2000.
The Russell 2000 dropped out of support on light volume. The MACD trigger 'buy' is maintained and the index still holds 20-day MA support. The index is the canary-in-the-mine for a bear market and has held up reasonably well on recent selling. A move above $207.50 (via IWM) would effectively negate the January selloff.
Yesterday's non-event was a positive for the markets, although it will take more than a one day of stalling action to stop a selloff. A respectable start to the week if you are of the bullish persuasion (and there doesn't appear to be too many of those about).