Close to an Inflection point for S&P

A second day of losses brought markets closer to support, and a potential decision point.

The S&P tagged support at 2094 and the 20-day MA at 2090. Bulls will need to step up to the plate tomorrow if such key support is to hold. Lose 2093 and 2064 comes into play. Volume climbed today to register as distribution.

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Bears Scratch The Market

It was looking good for bears, until the late recovery put a bit of a gloss on proceedings. The first half hour of trading (and premarket) will be important tomorrow.

The S&P is trading close to breakout support, and the 20-day MA is fast approaching to lend a hand. If bears were able to break both these levels it would open up for some downside. Although, fresh support would quickly emerge at converged 2064 support and the 50-day MA, but beyond that there is room down to 2000/1990.

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Solid gains, especially for the Semiconductor Index

It was another good day for indices, but it was left to the Semiconductor Index to drive the biggest gain of the day. This is good news for Nasdaq and Nasdaq 100 bulls. The measured move target for this leg is 800.

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Light selling, but not enough to threaten breakouts

Friday's GDP data didn't rock the boat too much, and by the close losses were light and inline with profit taking.

The only warning sign was a 'sell' trigger in the Nasdaq Percentage of Stocks Above the 50-day MA. Unusual in that the Nasdaq has been the high flyer of the indices in recent weeks. Breadth metrics for the Nasdaq need to be watched closely should such weakness expand.

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