Moving Towards an Eruption

After a few narrow range days on Friday and yesterday, this morning's opening gap down saw buyers immediately step in, bringing the indices back to flat or slightly green as I write this. 

To update the 30-minute SPY chart, below, from yesterday, note that the breakdown attempt from the well-defined rising channel lines failed this morning. Buyers defend the move below $201 adequately, and now the ball is theirs to push higher yet back inside or even above the channel for a bear trap. 

Small caps are also outpacing the market, a reversal off yesterday's underperformance. 

And TWTR is up on news of raised guidance and layoffs. The chart still has much work to do to reverse its bearish structure. But holding back over $30 would be a good first step. 

Overall, though, the market is still digesting its rally off the late-September lows while also coming to terms with its prior mid-September highs. Indeed, we are likely moving towards an eruption in the coming days and weeks, what with the still-compressed range on the Dollar/Yen as well, a proxy for equities.