2,900 (a crucial level going back over a decade) on the Nasdaq and the 780 head and shoulders neckline on the Russell 2000 index are both holding for now. However, both of those levels looks vulnerable to a bear assault on any further weakness out of what could be deemed bear flags this week. Merely holding a key level is not enough of a reason for me to be an aggressive bulls. I need to see some buyers of size present themselves in a meaningful way this week before I would consider loading up the truck. The bulls had several opportunities for sharp rallies last week, but had to play from behind the whole time and failed to accomplish much of anything.
A change in character back towards a trending market would be welcomed by me, but to act on that desire seems premature given the technical evidence currently presented to us.