Another day of quiet timid action as investors become transfixed by Tuesday's election and Wednesday's Fed meeting. Both events could be priced-in already unless bulls are just taking us on a light volume snipe hunt.

Economic news was a wash today and evidently earnings didn't inspire bulls or bears.

The major movements were in commodities led by precious metals as Uncle Buck stumbled again while bonds rallied.

Continue to U.S. Sectors, Stocks & Bonds

Continue to Currency & Commodity Markets

 

 

Continue to Overseas Markets & ETFs

The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends.  I believe readings of +1000/-1000 reveal markets as much extended.

The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

Continue to Concluding Remarks

Viewing monthly charts at the end of each month gives us more perspective and muffles some of the shorter-term noise.

No question next week holds a heavy dose of news. You see the VIX climb as investors seek some put option protection. Further volume has fallen off a cliff this week meaning tensions are high.

Let's see what happens. You can follow our pithy comments on twitter and become a fan of ETF Digest on facebook.

Happy Halloween! And, let's hope if you're long you get treats and no treats.

 

Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, MDY, IWM, QQQQ, QLD, XLB, IYR, XLY, XLU, TBF, TBT, UDN, GLD, DBC, DBA, DBB, EFA, and EEM.

 

The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell any security.  Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period.  Chart annotations aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com .

 

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