Tuesday, October 26, 2010

Daily Market Commentary: Toys With Support

This time it was bulls who toyed with bears. The S&P finished with a doji at support as my anticipated morning sell off failed to stick. The S&P was able to return to its opening price, but perhaps more interestingly, it was unable to break above intraday resistance of 1,187.5 from Monday. Watch this level for Wednesday as shorts may attack aggressively here.

AAAAAAAAAB S&P 500 Large Cap Index ($SPX): "

via StockCharts.com

"

The Nasdaq gapped below rising channel support but was able to make it a few points above yesterday's close.

($COMPQ)

via StockCharts.com

The semiconductor index also closed with a doji, but there was enough bullish momentum to reverse the early technical bear signs.

($SOX)

via StockCharts.com

Other bearish markers in the indices haven't reversed yet, keeping with their net bullish technical picture. Tomorrow is a toss up but the fact that indices are failing to push off their rising channel support suggest bears could turn the screw anytime. Buyer beware.

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