The revenge of the bulls continues as the bears are now pressed into proving their mettle at critical resistance from several 50-day moving averages. The major indices faded from 50DMA resistance, but it proved to be a temporary setback. Now, conditions seem aligned for a major breakout.

Banks, tech, Sears and airlines dominate the conversation.

This week 380 publicly traded companies are reporting for the third quarter, 130 are S&P 500 constituents.

First, remember that until proven otherwise, last week’s selloff remains only that – a minor, short term dip. Our entire sample US and European indexes remain within their long term uptrends, albeit with further weakening momentum that is now mostly neutral, neither bullish nor bearish, and which suggests more range trading ahead.

Normally we first we look at overall risk appetite as portrayed by our sample of global indexes, because the EURUSD has been tracking these fairly well recently.

What can we say after yet another sharp sell-off? Since last Friday’s open, the S&P 500 has fallen nearly 3%, the Nasdaq has fallen more than 4.3% and the Russell 2000 has fallen more than 3%.