10/29 - Market Analysis

SPX
- overall up day til the last few minutes where all the gains were wiped out from profit taking and ppl scared of tomorro'w GDP numbers
- 20 MA was probably the main reason most technicians sold into the rally...and thats the reason why i sold earlier and added a short at the EOD
- i think we will get at most 1 day of declines before we skyrocket again on friday...



NDX
- 20 MA was strong
- most technical of the charts to me..
- pullback here will be very healthy


XLF
- the culprit of all the resistance throughout the day and also of the selloff late in the day
- a nice pullback was made today..a small one tomorrow might be all we get from XLF
- any rally day where XLF doesn't not participate has very high odds of failing...


RKH
- same as XLF, just that 20 MA is very apparent here


USO
- finally! we broke out...i am so bullish!
- now, if we get the nice pullback i am thinking we can get in the indexes, USO might pullback to its trendline before rallying again...just make sure it doesn't close below the trendline


VIX
- closed right at resistance
- doesn't want to go down as the 20 MA again adds strong support
- overall though, it shouldn't be able to avoid the unavoidable toppling thats to come


A/D
- as i said, today is a bullish day..these numbers show it...
- looks very much like a bullish consolidation day...


Analysis: Commodities were the leaders today and financials were the weaklings...that makes for catchup from the laggards and consolidation from the leaders...which to me sounds very bullish..the strength and buying of the bulls today was very evident..it was only until the last few minutes was it unable to fight off the bears...definitely having more bulls than bears...so listening to the charts, a decline tomorrow either for part of the day or for the whole day is expected...but in the intermediate term, this rally will continue...

Sectors:

best - gdx, xme, kol, ung, slv, dba, uga
worst - xlf, smh, rkh, xlk, fxi

- damn i wish i had some of the commodities today...their huge moves off 52 week lows was incredible...now we can say that we will have a broadbased rally...all the commodites of course was waiting for USO to confirm strengh and we saw that in the daily chart...looking forward, everything looks bullish and a slight pullback of all the sectors especially the best sectors of today will mean for cherrypicking time...