Tuesday, November 09, 2010

Daily Market Commentary: Dips Lower

Bulls wavered a little as higher volume selling pushed markets slightly lower.

The S&P stopped just shy of a test of rising channel support.


via StockCharts.com

The Nasdaq closed with a bearish engulfing pattern, but Tuesday's intraday fake breakout didn't tumble far enough down to close last week's breakout gap. Tomorrow could see this challenge completed.


via StockCharts.com

The Russell 2000 lost the most on a relative basis but still plenty of room before channel support is tested.


via StockCharts.com

Today's action did not result in a fundamental shift to bears, but the selling has put bulls on notice. If there is any follow through (down) tomorrow it will take indices out of their rising bull channels and give shorts something to work with.

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