Monday, November 01, 2010

Daily Market Commentary: Further Indecision

Market Action has taken the look of a picket fence with a string of doji for Large Cap indices. The indecision is coiling market action towards this week's election. For the S&P the 20-day MA is playing as support, although the MACD histogram is increasing pressure to the downside.

($SPX)

via StockCharts.com

The Nasdaq was a little more disappointing as it drifted out of its rising channel on a light loss. It's MACD moved to a 'sell' trigger - although the indicator had flatlined prior to the trigger, weakening the signal.

($COMPQ)

via StockCharts.com

The Russell 2000 gave up a little more but managed to hold the 20-day MA. It had already dropped out of its rising channel and technicals have substantially weakened.

($RUT)

via StockCharts.com

While the semiconductor index is just a few points shy of resistance.

($SOX)

via StockCharts.com

Note the sharp loss in form (particularly in technicals) for the Percentage Nasdaq Stocks Above 50-day MA.

($NAA50R)

via StockCharts.com

The Nasdaq Summation Index is similarly weakening, but not at the rate of the Percentage of Nasdaq Stocks above the 50-day MA.

($NASI)

via StockCharts.com

Based on today's action and increasing weakness in market breadth, traders look like they are heading to the exits.

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