A short week for indices has opened with some modest selling, hardest felt in the Russell 2000 (IWM), but common across all lead indices.

The Russell 2000 (IWM) gapped down but hasn't yet tagged support marked by the September swing high. There is the current 'sell' trigger in the MACD and On-Balance-Volume offset by the bullish momentum for intermediate-term stochastics, but given today's action I would be looking for a likely intraday move down to the 50-day MA, although it may be late this week or early next week before this happens.

The Nasdaq stayed close to last week's highs, but the "spinning top" following on from the doji point to continued indecision and this still could go either way, but as it appears to be shapping a lower high, the likelihood for a lower low looks more probable. Adding to the bearish outlook, today's volume ranked as distribution.

The S&P came back to tag its 20-day MA but is best positioned to push to new highs. Unlike, the Nasdaq, it hasn't formed a lower high sequence and it's the index outperforming peer indices. So if there is an index that's going to attract buyers it's going to be this one.

If indices are to finish strong on weekly time frames, then I would want to see intraweek lows formed tomorrow (if not already in place). If we see a close below 20-day MAs in the Nasdaq and S&P tomorrow, then it may be too late to save the bullish weekly outlook.

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