Today seemed like a rather innocuous day didn't it. Volume increased over Friday. The trouble with the market is that seemingly innocuous days can be short term tops or bottoms. The 8/28 up bar was rather inconspicuous yet it turned out to be a short term low. And so it could easily be that today's seemingly inconspicuous bar could turn out to be another short term top. The market internals are weak and many indexes are at round numbers. It won't take much selling pressure to send it lower. There were 243 new highs and 56 new lows. The number of lows is unusually high for all time highs. I believe that is a sign that some stocks are still breaking down from tops. Check out the chart of EBAY for example. It might have consummated a top formation today. It still looks like the market is thinning out overall. There has been a rush into financials the last several days. They have been lagging for months though. I don't know if that is the start of a new move or just a move into the laggards. It should be a positive for the broad market if it is a new move. It is worth keeping an eye on.
The McClellan oscillator went negative again today. Market internals continue to be weak. Will there be more profit taking tomorrow or will the bulls come stampeding back again? The market looks very tired, but so far keeps holding up. SPX has a potential short term double top should it break below the 11/20 1777 low. The market needs to prove all these round numbers are not going to be resistance. The COMP hit 4000 today in case you missed it. The SOX has been struggling with 500. I think it is very unusual to have so many indexes hitting them at the same time.
Chart practice has been updated with PETM the stock tonight.
http://traderbob58-chart-practice.blogspot.com/
Bob
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