Candy Matheson | Sep 02, 2012 01:32AM ET
Further to my last weekly market update, this week's update can be summed up in three words...more profit-taking.
The following Weekly charts and graphs (for the past week) of the 6 Major Indices and 9 Major Sectors show that these markets have not advanced for a second week as they struggle at major resistance.
Since this tends to produce volatility, I'll continue to monitor it as depicted by the following Daily ratio charts of the SPX:VIX and RUT:RVX. As of Friday's close, both the S&P 500 and Russell 2000 Indices are sitting near the apex of trendline/channel resistance/support. Volatility has been rising the past two weeks and a break of the apex one way or the other is inevitable soon. We may see a build in volumes as price tries to establish a trend away from the apex...something else I'll be monitoring in order to assess the viability/sustainability of such a move. Perhaps we'll see a rotation into the more defensive Sectors and Large Cap Indices in preparation for volatility.
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