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Tickers in this Article: DIA, IWM, SPY, QQQQ, DELL
The bulls managed to send the major financial indexes higher in the early part of the week, but unfortunately, the momentum was unable to continue as mixed economic data caused traders to question the conviction of the market recovery.

As you can see from the chart for the S&P 500, as represented by the S&P 500 SPDRS (NYSE:SPY) ETF, the 111.30 level acted as a strong level of resistance and many are now wondering if the index is heading for a deeper correction. The S&P is still trading within an established uptrend and technical traders will continue to hold a bullish outlook on the market until the index closes below the support of the ascending trendline near the 106 level.

Source: StockCharts.com

The Diamonds Trust Series 1 (NYSE:DIA) hit resistance near 104.60 and the newly-formed doji candle is suggesting that the short-term pullback could continue. Traders will watch for the 101 level to act as support.

Source: StockCharts.com

The iShares Russell 2000 Index (NYSE:IWM) ETF continues to look relatively unhealthy. IWM recently set a lower high, and it couldn't muster enough strength to move above its October higher like its larger-cap counterparts. Many traders will watch for the index to find support at its long-term moving averages. The bad news for bullish traders is that there are not many support levels between the current level and the 200-day moving average, which is currently near $52. This chart suggests that the pullback could end up being much sharper than many were anticipating.

Source: StockCharts.com

The Powershares QQQ ETF (Nasdaq:QQQQ) was hit hard in the second half of the week. The lackluster earnings report from Dell Inc. (NYSE:DELL) didn't help the case for a move higher. However, the diverging moving averages shown on the chart are a clear indication that the long-term uptrend in technology stocks is still intact.

Source: StockCharts.com

Bottom Line
The action this past week clearly shows that the conviction of the bulls and the strength of the market rally continue to be in question. The late-week pullback has caused many to wonder if the rally is running out of steam or if this is a brief period of consolidation before another leg higher. The small-cap stocks are still underperforming their larger counterparts, but in general, the long-term pressure still seems to be to the upside.

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