A late recovery managed to put some gloss on today's action. Volume climbed to register as distribution.

The S&P is in the process of regaining a relative performance advantage over the Russell 2000. Momentum remains on the bearish side of the fence with a sub-50 reading.

The Nasdaq gapped lower, but managed to finish the day just shy of where it opened (most of the damage was done pre-market). There was a fresh 'sell' trigger in On-Balance-Volume to add to today's action.

The Russell 2000 broke from its rising 'bear flag' as it held on to bearish momentum and bear crossed the -DI and +DI.

The Dow also broke rising support and is gearing for a retest of 15,370.

It may be Europe which offers a lead. The DAX is retesting the comparable August low (which is a long way from been tested in the U.S. indices), but gains in Europe could spill into another short covering rally for U.S. Index bulls.