There is a clearly defined pattern delineated on the chart for the Russell 2000 which shows that a break below the steeply rising trendline through the lows would be considered by some technical analysts to be a significant violation.

US equities look vulnerable again to more corrective action.

The next few trading days could well be erratic as today marks the end of the first quarter, tomorrow sees the NFP data and Friday is a holiday.

While the short-term view for the S&P 500 is for a slow melt up into higher prices, a decisive violation of the support level provided could re-energize the bears.

It appears that J C Penney (JCP) may have plenty of upside potential in the intermediate term.

Clive Corcoran screens index and sector charts for those where the 50-day EMA is either at, approaching, or has just broken below the 200-day EMA.

Clive Corcoran suggests that the Russell 2000 may need to revisit the 660 zone, which is where the 20-day EMA is to be found, in coming sessions.

The IWM proxy chart for the Russell 2000 index indicates that the momentum which has propelled this index during the last four weeks appears to be topping out.

Perhaps the FOMC statement to be released later today will act as a catalyst and provide a little more useful information about near-term direction.

Friday’s action in US equities produced several candlestick patterns which suggests that the market may be struggling to find new excuses to push higher in the immediate term.