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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

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Friday, November 02, 2012

Money Flow for October Week 5

Further to my last weekly market update, this week's update will look at:
  • 6 Major Indices
  • 9 Major Sectors
  • 3 Ratio Charts of the SPX:VIX, RUT:RVX, and NDX:VXN
  • Ratio Chart of AAPL:NDX

6 Major Indices

Trading was mixed in the Major Indices during this 3-day week, as some closed slightly higher, and some closed lower, as shown on the Weekly charts and the 1-Week percentage gained/lost graph below.

9 Major Sectors

Trading was also mixed in the Major Sectors during this 3-day week, as some closed higher, and some closed lower, as shown on the Weekly charts and the 1-Week percentage gained/lost graph below.

In general, it would appear that this week's gains vs. losses in specific Indices and Sectors can be primarily attributed to the devastating effects caused by Hurricane Sandy. Most of the Indices and Sectors are trading at/near their mid-Bollinger Band on the Weekly timeframe. This week's trading can be described as volatile, at best. With the U.S. elections coming up on Tuesday, bringing with it more volatility and uncertainty, I can only suggest monitoring price action on these around their mid-Bollinger Band in order to gauge relative strength (above) or weakness (below). Generally speaking, those Indices and Sectors currently above the mid-Bollinger Band are outperforming those below. Whether this continues next week, or in the weeks ahead, remains to be seen.

3 Ratio Charts of the SPX:VIX, RUT:RVX, and NDX:VXN

On a Daily timeframe, I'm watching for a break and hold below the last swing low (on the following three ratio charts comparing the SPX, RUT, and NDX Indices with their respective Volatility Indices) to confirm that further selling/weakness is occurring in the SPX, RUT, and NDX on accelerating volatility momentum. In all three, the Momentum Indicator is still in bearish territory below the zero level and is suggesting further weakness ahead for the SPX, RUT, and NDX, as they were unable to hold onto Thursday's gains and as price closed, once again, below near-term resistance levels.

Ratio Chart of AAPL:NDX

I've added a Daily ratio chart of AAPL:NDX, as well. I've discussed AAPL in several posts recently, most notably in the first one on October 23rd. I've been watching for a break below its near-term support level, and that occurred in Friday's action. Momentum is accelerating to the downside and is well below the zero level. Further action below the zero level is subject to bearish influences of more weakness and volatility.  It's one that I'll continue monitoring over the days/weeks ahead inasmuch as it's such an influential stock in the Nasdaq 100, S&P 500, and S&P 100 Indices.

P.S.   Just a reminder that Daylight Savings ends November 4th.

Enjoy your weekend and good luck next week!

N.B. I'll be posting a number of charts showing support and resistance levels for a variety of instruments during the course of the weekend, so please check my Blog for that post.