It hasn't been pretty, but it has been effective as both the Nasdaq and S&P have so far managed to defend the breakouts from their September lows. Although, price has done the business, intermediate stochastics [39,1] have remained on the bearish side of their respective midlines.

The Russell 2000 (IWM) had the best of the days action, but it has yet to confirm the swing low as the S&P and Nasdaq have both done. Volume buying didn't register as accumulation, which was a little disappointing given the solid white candlestick. And while edging a close above its 20-day MA, I would want to see some follow through tomorrow.

There is one metric I have noticed that could spell good news for bulls and that's the relationship between the Percentage of Nasdaq Stocks above their 50-day MA and the Nasdaq Bullish Percent Index, now on a 'buy' trigger. The last such signal in May saw some solid upside for the Nasdaq. I would be looking for another round of gains for the Tech index here.

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