A mid-week update on a few key charts.

Regards - VHF

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Technical Action Yesterday

Technical action by S&P 500 stocks remains bearish. No S&P 500 stock broke resistance and another nineteen S&P 500 stocks broke support. The Up/Down ratio fell from 5.25 to (368/81=) 4.54.

Technical action by TSX Composite stocks also remains bearish. No TSX stocks broke resistance and 10 stocks broke support (Barrick Gold, Bank of Montreal, Bombardier, Canadian Pacific, IGM Financial, Manulife, National Bank, Power Corp., Power Financial and Royal Bank. The Up/Down ratio fell from 5.69 to (157/35=) 4.49.

Interesting Charts

“Sell on news” remains the main theme despite the release of third quarter reports that exceed consensus. Canadian Pacific is an example.

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Notable on the list of U.S. stocks breaking support were the U.S. Steel stocks (e.g. U.S. Steel, AK Steel, Allegheny Tech) after U.S. Steel reported a lower than expected third quarter loss.

Chart courtesy of StockCharts.com www.stockcharts.com

Gold stocks once again were on the list of stocks breaking support.

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In Canada, Financial Service stocks were prominent on the list of stocks breaking support. iShares on the TSX Financial Service Index broke two support levels yesterday on higher than average volume. Short term momentum indicators show that the sector already is oversold.

Chart courtesy of StockCharts.com www.stockcharts.com

Weakness in the financial service sector was a major reason why the TSX Composite Index fell below its 50 day moving average.

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The Russell 2000 Index also broke below its 50 day moving average.

Chart courtesy of StockCharts.com www.stockcharts.com

Bullish Percent Index for S&P 500 stocks fell below its 15 day moving average, a Bullish Percent Index sell signal. The Index peaked five weeks ago and has established an intermediate downtrend.