Tuesday, November 02, 2010

Daily Market Commentary: False Dawn

A fake-out by bulls? A big gain for the Russell 2000 suggested there was real buying at work in the market. But looking at the volume gain in the other indices, the buying in the Russell 2000 might not be so bright. Technically, the Russell 2000 remains weak with the bounce off the 20-day MA the only source for optimism. The downside break of the rising channel remains.

($RUT)

via StockCharts.com

Action in the Nasdaq failed to impress. The narrow doji has the look of a 'shooting star' with a strong chance of a gap down tomorrow.

($COMPQ)

via StockCharts.com

The SP managed small gains, but not enough to break highs (although enough for a new closing high).

($SPX)

via StockCharts.com

With election results likely to trickle in it's hard to see a positive spin on the outcome. Sellers have the easier choice - is there a belief something positive could come out of the election results? I doubt it.

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