It seems the on again off again euro zone troubles just keep coming. Wednesday it was Spain's turn in the spotlight with threats of credit rating downgrades. So, just when you think things are "fixed" they come unglued. This affair caused the dollar to rise and commodity related markets to fall as many investors get whipsawed about.

Despite the rise in the dollar and another bout of POMO bonds continued to sell-off. It makes one wonder at the Fed's policies frankly since the effect thus far has been the opposite of policy intentions. Further, the rise in yields will eventually become a negative for equity investors as higher yields compete for investor dollars.

That said, investors did get better than expected news today from Industrial Production (.4% vs .2% consensus) and the Empire State Manufacturing Survey (10.57 vs 3 consensus). Better earnings were noted from Office Depot and Staples to help the consumer sector which hasn't needed much help lately.

Volume was light once again while breadth was negative.

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

Once again markets just can't get going with any volume or conviction. Nevertheless as we head to year-end markets seem well-managed given low volume.

Thursday features Jobless Claims with estimates continuing along at 425K; Building Permits & Housing Starts ending with the Philly Fed.

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


Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, MDY, IWM, QQQQ, XLB, UYM, XLF, XLI, TBF, DBC, USL, DBA, XME, JJC, EFA, EEM, EWJ, EWA, EWC, EWG, EWM, EWZ, EPI, RSX & FXI.


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 .

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of ETF Digest, Dave's Daily blog and the best-selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management, published by Wiley Finance in 2008. A detailed bio is here: Dave Fry.