Wednesday, November 03, 2010

Daily Market Commentary: More of the Same

Not much to add on yesterday other than some heavy volume buying. The buying didn't do enough to push markets much beyond their open price, but did enough to recover losses triggered in mid-afternoon trading. All-in-all it was a quiet day given it was a Fed and election results day.

The election results were of no surprise (other than the 'dumb' logic of independents going from Obama to Tea Party in two years) and the outcome will be political gridlock. Markets will prefer this environment over one extreme or the other so the lack of reaction is of no great consequence. Markets are in 'hot' territory so further scrappy sideways trading can't be excluded.

For the S&P keep an eye on the 20-day MA.

($SPX)

via StockCharts.com

The Nasdaq is running along the lower band of its former channel.

($COMPQ)

via StockCharts.com

The Russell 2000 was able to hold on to yesterday's gains.

($RUT)

via StockCharts.com

But the semiconductor index made it to trading range resistance; can it crack through?

($SOX)

via StockCharts.com

With the election and Fed out of the way the state of the market hasn't changed from yesterday. But with the pressure building on 3-week resistance there could be pop higher tomorrow or Friday.

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