10/31 - Market Analysis

SPX
- resistance in play
- broke above 20ma and the small trendline
- no confirmation that a pullback has started yet


NDX
- same as other indexes...resistance is right above
- sideways trading day


XLF
- resistance level is where it closed
- light volume as it rallied today


RKH
- broke above 20MA
- resistance still in play


USO
- rallied to close near the week's high on light volume
- could rally much higher from these levels


VIX
- looking weak as it finally broke the 20ma support
- might freefall more until the next support or even further...


A/D
- pretty solid rally today



Analysis: Same theme going on in most of the charts...charts still able to make higher closes but o lighter volume and almost all are at good resistance levels..the moving average resistance on some charts have been broken and now the resistance has to do with price, which is of course more important...as signs of a broken uptrend in the 30" chart is not confirmed, it would not be wise to be 100% short stocks..but...as resistance is very close and strong, its also not wise to go 100% long...best is probably just to hold onto longs until support is broken, then go short for the pullback....until then, just keep milking the rally...

Sectors:
best - rkh, xhb, tan, xlf, iwm
worst - xlu, gdx, gld, dba, eem, xlk, fxi

- bright spot for bull is that financials led...thats very encouraging...not only that but small caps and homebuilders did well too...these 2 sectors also very needed if the rally is to continue...