11/7 - Market Analysis

SPX
- supports held on light volume
- need a confirmation up move monday
- 20ma might be resistance if we rally


NDX
- same story as all other indexes
- charts do suggest higher probability to go higher here than lower


RKH
- confirming the index's situation
- despite being one of the weaker indexes, its rise at the EOD is encouraging...looking at sectors, i say that EEM, FXI, OIH, and RKH are the reasons for the EOD rally...and these of course are the most important sectors if we are to rally...bullish signs to me..

RKH 5min
- watch the volume here and how it correlates so well with the price movement...
- all strong volume was for the buyers, not sellers...
- if this means that momentum in the next leg favors the financials, the next leg up will be huge


USO
- bearish chart as support was broken this week
- possible to just be experiencing a fakeout on its way to a 2x bottom formation


CRB
- here u see just how strong the bullish divergence in the oscillators are..emphasizes that we have a higher probability of a hold on support than a breakdown
- not bullish yet but if we get bullish here, its very bullish for the market


VIX
- resistance held and 70 looks not so possibile anymore
- a confirmation day monday will help a lot
- MAs are so important its crazy...notice the now falling 20MA


A/D
- overall more bullish than bearish...
- volume is more bullish than other indicators here...

Analysis: volume light, financials lead late rally, and indexes close above important support levels...my conclusion is that charts favor that we are experiencing a pullback and today might be the end of it...BUT confirmation monday will be needed to know for sure...30" charts didn't quite break its resistance yet for most of the charts and definitely not on any of the major indexes...i think that cash is good now and favor a move up next than down..

Sectors:
best - fxi, eem, smh, xle, xlu, kol, mdy, xlf
worst - xhb, ung, dba, gdx, uup, hhh, uga

- basically strong sectors are the important ones...the weak ones are the less important ones. a true rally will require all sectors but honestly, USO and XLF are most important...others will follow if they trend higher...i like financials and energy if we rally...