Bears had a field day as they pushed the Bulls around with relative ease, taking down what modicum of strength buyers tried to muster from the open. Volume again eased in a trend which suggests selling enthusiasm is on the wane, even if the headlines suggest otherwise. Nasdaq internals still haven't hit the levels seen in August (although August lows did reach deep oversold levels) so the inkling here favors more downside. If the Summation index: and percentage of stocks above the 50-day MA can rise above their 5-day EMAs with supporting technical 'buys' for the likes of the MACD (in particular), then there is the potential for a strong bullish divergence which would set up a 'Santa' rally. Long term bears will look to August lows as the line in the sand for the start of the next cyclical bear market. For the semiconductors it looks like the cyclical bear is off and running: While small caps are perhaps the first of the lead indices to worry about such support: With

Ronald Domingues runs a "G100 Ranking" for the S&P based on participant predictions for the S&P over the next 24 hours. Up to 100 individuals can qualify to participate if they score greater than 35% accuracy in their predictions (currently 33 make the grade). Underperformers are demoted back to a pool, and those from the pool with a greater than 35% accuracy are promoted. Prior to the market open he sends an email out with the results of the poll. This was yesterday's pre-market call: Further information can be found here .

The Nasdaq found its legs at the 200-day MA and is at least enjoying a bounce. The Nasdaq 100 wasn't as weak and has risen in sympathy prior to testing its 200-day MA. However, yesterday's selling put a big dent in the rate of decline for the supporting technicals. Bullish percents, stocks above 50-day MA, and summation index all suggest there is likely more downside to come. This will be of little comfort to large and small caps which are lingering below their respective 200-day MAs (small caps are well below their 200-day MA). Fallond

With so much overhead supply it is hard to see where indices can go here. The Nasdaq is perhaps looking at a move back to the 50-day MA (along with the Nasdaq 100). The Dow and S&P will perhaps loiter around their 200-day MAs, while semiconductors and small caps swirl around in confused trading - perhaps finding resistance at their 20-day MAs. Fallond

New home - new dilemmas. Broadband access won't be available until November 23rd at the latest. This likely means no blog update for this weekend. The same goes for the main website. Subscribers will get an email commentary on the market action and memberships will be extended for the period of the downtime. Fallond

Bulls and bears are in a bit of a tussle, but given this fight is occurring in the low end of yesterday's range the advantage would lie with the bears. The weekly close will be of a significant importance for the averages. For the Nasdaq there is still a good deal of support to look too: But bears will point to the extended weakness in the semiconductors. There is very little in the way of support until July lows are tested - ugly.... Large caps are in the process of making an important test of 40-week MA support. A decisive volume break of this average would set up a test of the August lows and a potential double top confirmation. But, this is still some time away: Small caps are in bigger trouble having cut through their 40-week MA. Only August lows remain to save the Russell 2000. Lower highs and lower lows are on the cards: Fallond

The blog posts will be a little slow for the next few days as I have relocated into a new abode and need to get set up on wireless/broadband. The markets are trading in a scrappy up and down, mixed with rising volatility. Support from mid-October lows still holds true for many indices, but overhead supply is never far from any strong day the market logs. There is some interesting bullish action from some of my newsletter stock picks - which would at least indicate some pockets of strength: Mastercard ( MA ) for one: Occidental Petroleum ( OXY ) is another: Maybe today is a day for buying? Fallond