The big names just don't want to break down. Remembering the DJIA is a price weighted index -- companies like IBM keep things well-propped. In the meantime, tech struggles over the past few days especially with the breakdown in "cloud" sectors.

Commodity markets were hit hard on worries China's inflation situation will warrant more tightening. This, should it happen, is never friendly for commodity markets and precious metals as we posted earlier with GLD (SPDR Gold ETF).

Economic data was mixed with better Jobless Claims and Housing data while the Philly Fed report was disappointing with current report and the previous report adjusted lower.

Earnings continue to flow and most beat expectations handily once again reminding us of the ineptitude of most analysts. It's a hard job, but somebody has to do it at least making sure companies "beat" for the M&A goodwill.

Through the first half of the day stocks stayed lower but crept higher abetted by more POMO and a recovery in some financial stocks. It may be very difficult for any meaningful sell-off or correction as long as Ben is printing.

Volume improved significantly today which is typical on down days. Breadth, per the WSJ, was decidedly negative.
































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

We showcase tech sectors and stocks Thursday since it's been a tough week for the sector away from a few big names like IBM and MSFT. It's an important sector and perhaps next week we'll put commodity sectors in focus.

Friday is options expiration and it should prove interesting given renewed market volatility this week.

Earnings reports from Bank of America, GE and Schlumberger highlight trading on Friday.

While I'm respectful of current DeMark indicators advising "trend exhaustion", the Fed's POMO activities may trump all other technical considerations and indicators. I must yield to the power of the press...printing press that is.

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: EMC, but no positions in other securities mentioned.


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.