Light trading over the Veteran's day holiday did little to change the broader picture. The S&P remained at its 200-day MA, generating what looks like a whipsaw signal for on-balance-volume. The S&P remains the last of the key indices to hold this moving average, it will be a difficult task for it to hold in such light. The Nasdaq posted a small loss, but it looks ready to make another leg lower. While the Russell 2000 will be looking for support around 760. It currently trades around a minor support level of 795. Today's trading was clouded somewhat by the holiday.  Tomorrow will give a clearer picture as to what the week holds. Breadth does not suggest a significant swing low is in play, but a relief rally is well within the realms of possibility. --- Follow Me on Twitter Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com . I offer a range of stock trading strategies for global markets which can be Prev

This week's post covers Jack Henry and Associates: JKHY . Follow Me on Twitter

After a brief respite, marker breadth took another leg lower. Breadth losses were not small, but breadth indices haven't yet made it to oversold territory. This suggests more downside is to come. The Percentage of Nasdaq Stocks above the 50-day MA fell to 27%.  Stochastics are close to oversold, but they aren't quite there yet. Another week of downside would probably be enough to see technicals oversold, but there is probably still 2-3 weeks of breadth loss required before the breadth index itself is oversold. The Nasdaq Bullish Percents are the most overbought. Stochastics are caught in neutral territory, but trending lower.  The MACD closed the week with a 'sell' trigger. but the Bullish Percents index is still above 50%; strong swing lows kick in sub-10%, but tradeable swing lows usually need a sub-50% value. The Nasdaq Summation Index is another index which hasn't reached swing low territory.  For this index, a sub -800 rating is usually good enough

Whatever offerings 200-day MAs could give to bulls, were not enough to tempt buyers.  Markets continued their slide as the Russell 2000 followed the Nasdaq and Nasdaq 100 through its 200-day MA. Selling volume eased, which may reflect an oversell on Wednesday's distribution, but it's going to be hard to build enthusiasm for long term positions.  Seasonal factors may yet prevail, and 'Santa' has plenty of time to make an appearance. Today wouldn't be a bad place to start, but any early steps towards a rally are likely to be tentative. Reasons why 'now' may still be too early for a bottom come from breadth indicators.  The Nasdaq Summation Index, Bullish Percents and Percentage of Stocks above the 50-day MA are all trending lower, but not all have reached areas which typically define swing lows for the parent index.  The Bullish Percents ($BPCOMPQ), in particular, look 'too bullish' to suggest all the weak hands have left the building. Friday

It looks like Markets decided to take a leaf out of 2008 and sell off after Obamas' (re-)election. The damage was extensive, and any tip-toeing around support was quickly blown away.  Not surprisingly, the day ranked as a confirmed distribution day given the level of point loss. The Nasdaq showed the gap loss at its worst. That MACD trigger 'buy' won't be happening tomorrow! Also, the On-Balance-Volume 'buy' was negated too. The Russell 2000 finished the day closest to its 200-day MA.  Bulls may want to pay attention to this tomorrow (807.23). The S&P hasn't yet dropped to its 200-day MA. It may yet see a test tomorrow, although the Russell 2000 probably offers the lower risk play. In part, because the Dow Jones cracked below its 200-day MA. My sectorbreadth studies suggest the sell off isn't done and markets aren't in a position to develop a strong swing low - yet.  Short term, Russell 2000 and perhaps the S&P offer bu

Now that the dust has settled on the election, and life can get back to normal for those in Ohio, a quick look at the market gave bulls some hope. Yesterday was a day when buyers were able to grab some bargains before they sat themselves in front of the television to watch results.  Volume increased, which marked yesterday as an accumulation day. Futures also suggest some follow through from the open. However, it wasn't as good as it had one time looked during the day.  The Nasdaq gave back a large portion of its intraday gain by the close of business, finding resistance at its 20-day MA. This for an index working off a natural support level of a 200-day MA. A tough struggle may ensue here. In the bull column, there is a strengthening swing low in the Percentage of Nasdaq Stocks above 50-day MA, helped by a fresh MACD trigger 'buy'. The Russell 2000 enjoyed a decent day, falling shy of a 1% gain. But it does sit on the verge of a MACD trigger 'buy'.

Before I take a look at the Indices, I had to mention the dying gasp that was my $XLU position.  Utilities have had a rough few days, and the break of the swing low effectively knocked me out of the position I had.   Tax considerations for dividend paying stocks are hurting the sector.  And unfortunately, my sectorbreadth analysis suggests there is more downside to come. The indices were far more low key than the Utility sector. The S&P finished with a modest recovery, but has to contend with a 'Death Cross' between 20-day and 50-day MAs. Volume was light. Meanwhile, the Nasdaq continued to dig its heels it at its 200-day MA. Buyers have not given up on this index yet. The Russell 2000 has yet to manage a third pass on its 200-day MA, but it came close today. Disappointing though it was for my XLU position, there is still enough on offer from the Nasdaq and Russell 2000 for longside plays. The worry in weakening breadth is that an oversold status has n