Falling crude prices, strong consumer spending, a little M&A… it all led to a decent follow through following Friday’s rally.  The resiliency that the market has shown in the past 2 days following the distribution at resistance of last Wednesday is impressive.  It appeared that the market would need more time and come closer to testing the lows of the correction, but true to form over the course of October, it whipsawed back the other way. .. essentially putting us right back in the same position we were in last week.   While the market is much healthier than a week ago and gaining strength, strong resistance remains in all indices.  On any pullback from here, watch to see if old resistance acts as new support, which would provide further clues of a strengthening market.

Looking to tomorrow, the Fed meeting probably won’t be much of a catalyst for movement considering they have laid out their intentions over and over.. and over in the last few weeks.  Further rate hikes are already priced in and no suprises are expected tomorrow.  Negative comments from Dell will most likely lead to a lower open, at least initially.. keep an eye on those resistance levels. 

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Once again, the Nasdaq had no trouble with resistance around 2100 but much stronger resistance at the 50 day moving average (where it closed today) as well as the downward trend line are on the horizon.

The S&P made a significant move today by clearing the first hurdle of resistance at 1200.  However, it also faces resistance of the 50 day moving average and possibly a downward trend line above that.

The move in the Dow today could almost be called distribution in that it closed in the lower half of the trading range.  It has been the weakest of the indices for some time and faces significant resistance at 10500 and then again at 10700, if it can clear that level.