A Devious Scheme to Regain Control

Perhaps the only way bears could regain control of this market, even for just a short period of time, was to sacrifice a few pieces, so to speak, in terms of stepping aside as the small caps, biotechs, micro-caps, and Nasdaq all screamed to new all-time highs in recent weeks. 

Since then, though, the Nasdaq has fallen back below 5,100, rendering the recent breakout to be initially faded. While it is certainly true that is remains far too premature to declare these moves to be significnat long-term "bull traps," the initial fade is spreading beyond the Nasdaq.

As an example, consider the small cap ETF daily chart, below. The small cap breakout to new highs has been faded as price is back below the breakout level. Again, this need not mean a major top. But it does mean the initial breakout fell on its face and likely needs time to regroup, regardless of Greece. 

Another sign of a change in character in the broad market would be if the spike in the VIX and VIX ETFs today (UVXY VXX, etc) not only holds onto the gains but builds on them and punishes the habitual short-VIX-into-every-pop traders.