Coolhand's Market Analysis

The market began the trading day looking to bounce back from its recent weakness, but never really got in gear in what was a listless day of activity that kept to a tight range.

There was little in the way of leadership in the broader market and ecomomic data was of little interest to traders. Early this morning the October Consumer Price Index posted an increase of 0.2%, which was a bit lower than estimates, while Core prices remained flat.

Housing starts for October dropped 11.7% to an annual rate of 519,000, which was lower than had been expected. Building permits were also lower than estimates.

So the market took a breather today, which is to be expected after yesterday's rout. We can still bounce from here though, so another rally attempt is certainly possible.

Here's today's charts:



NAMO and NYMO remain on sells.



NAHL and NYHL also remain on sells.



TRIN is still flashing a sell, but TRINQ managed to flip back to a buy after a relatively extreme reading yesterday.



BPCOMPQ continued to ebb lower and remains on a sell.

So 6 of 7 signals are flashing sells, which keeps the system on a sell.

I am looking for more strength after today's mixed market, but I do not see a good buying opportunity yet as my short term system remains on a sell. Options Expiration is Friday so anything can happen, but for the moment I think the downside is limited and the upside potential in the very short term is probably the better bet. Short term outlook aside, the intermediate term trend is down as far the sentinels go and that's the signal that matters most.