The market began to sell off around 1:00 p.m., and the Nasdaq plummeted -49 points off its highs of the day to close down -18 points (-0.42%). The S&P 500 slipped -12 points (-0.64%), and the Dow fell -119 points (-0.70%). Volume was above average for all three indices.

Declining stocks led advancing stocks by a 5-to-3 ratio. Down volume outpaced up volume by a 7-to-2 margin. Market breath, which hit a high of +1,190 in the morning, closed the day at -710.

Economic reports were generally positive but were overshadowed by news out of Iraq. There was a report that a Syrian fighter jet attacked targets in Iraq. Today's sell off bean soon after. If investors were looking for a reason to take profits, they apparently found one. The uptrend is still intact, but further weakness would raise retracement risk back to the 20 EMA or 50 EMA.

Two things happened today which are worth noting. As mentioned previously, there was momentum divergence between the 9 June high and the last market high. The Nasdaq attempted to breakout and was rejected, falling back to the 9 June swing high. The S&P's decline fell below the prior 9 June swing high. If support slips away, the market will be susceptible to selling pressure.

The Fed's decision was to reduce the asset purchases (bond buying) by $10 billion; this lowers the monthly buying to $35 billion. The Fed will also keep the current interest rates in place and does not expect an increase in the near future.

After the Fed's announcement, the market got a lift and quickly erased the morning session's losses. The market went on to make a new daily high. The Nasdaq closed at 4,362, eclipsing the 4,346 swing high made on 9 June. The S&P closed at 1,956, one point above the 9 June high of 1,955.

It was the 4th consecutive up day for the market. The Nasdaq advanced +25 points (+0.59%), the S&P gained +14 points (+0.77%). The Dow Industrials rose +98 points, +0.58%). The Dow Utilities had a strong day, rising +1.99%. 

Range expanded today; the S&P range was 18 for the day compared to 10 on Tuesday. Volume was higher for all three major indices, making this an institutional buying day. Advancing stocks beat declining stocks by a 7-to-3 ratio, and up volume led down volume by a 9-to-2 ratio.

Volume was mixed, higher for the S&P but lower for the Nasdaq and Dow. This suggests that the sell off was not a broad decline and is more likely a normal pullback in an uptrend. Market breadth was negative all day, so the bulls took the day off. Decliners led advancers by 2-to-1, and down volume beat up volume by 7-to-4.

The Nasdaq gained +14 points (+0.34%) while the S&P could only rise +1 point (+0.09%). The Dow managed just +18 points (+0.11%). Volume was higher for the Nasdaq and S&P, but lower for the Dow, so today was somewhat mixed. 

The market recorded its 4th consecutive up day. Up volume beat down volume by 3-to-2 and advancers led decliners by the same 3-to-2 ratio. Breadth was mostly positive on the day. This was basically a sideways day, where the market swings up, then down, and ultimately ends about even on the day. It can be frustrating when trying to initiate trades.

Last Friday, the VIX hit a low of 10.73. This is lower than the March 2013 VIX that dropped to 11.05. The VIX is a contrarian indicator, and low levels reflect high market optimism (which can be bearish). Extremely low levels sometimes occur prior to a market downturn. However, the VIX is not a good timing tool; it represents conditions only. 

The market closed higher for the second week in a row. The Nasdaq gained +1.36% for the week and is firmly above its 50 EMA. The S&P rose +0.74% and closed at a new all time high. The Dow advanced +0.67% and is only 18 points from hitting a new all time high. 

The bias is long at this time, however the upside volume has be light. On a weekly chart of the Nasdaq, the down volume of the correction is still stronger than the up volume over the last three up weeks. That's a potential condition for a "lower high" that could form on the weekly Nasdaq. If higher volume comes into the market, then it would add confirmation for the current uptrend.

The indices are still in "low ADX" conditions on the weekly and daily timeframes. The current up move in the market may kick the daily ADX in strong territory, but so far that hasn't happened. For now, go with the uptrend, but remain flexible in the event conditions change.

The market has now been up in 5 out of the last 6 days. The S&P 500 closed at a new all time high (1,920). The Nasdaq rose +22 points (+0.54%), the S&P gained +10 points (+0.54%), and the Dow advanced +65 points (+0.39%). Volume was lower for all three indices. Advancing stocks out paced declining stocks by a ratio of 9-to-5 and up volume led down volume by 5-to-2.

The S&P 500 lost just -2 points (-0.11%) while the Nasdaq fell -11 points (-0.28%). The Dow gave up -42 points (-0.25%). Advancers beat out decliners by a small margin, but down volume beat up volume by just 9-to-8. Today was a narrow range day; the S&P had a range of only 7 points (normal days have a range of 10-15 points).

After the market advanced yesterday to end the correction, a low-volume down day can be expected. The fact that the market did not sell off heavy is a positive sign, as bull traps tend to occur after price makes new highs as the S&P did yesterday. 

Today was the 4th consecutive up day in the market. The S&P 500 closed at a new all time high of 1,911 (+11 points). The Nasdaq closed up +1.22% (+51 points). Short-term resistance for the Nasdaq is 4,286, the 2 April pivot high.

Dow Transports closed at a new all time high; the Dow Industrials closed below the all time high set on 13 May, but the index closed up +69 points (+0.42%)

Volume was higher today, so this was a day the BIGs were actively buying. The Nasdaq volume was up +18% compared to Friday, and the S&P volume increased by 27% over Friday's numbers. 

The increased volume, along with the S&P new all time high, are two of the factors which qualify to end the correction. Historically, the month of May has a slight negative bias, so continued caution is warranted.

Volume was lighter today. Advancers beat decliners by a 7-to-4 margin, and up volume outpaced down volume by 8-to-3. Breadth was positive all day. TRIN was low (< 0.75) all day, and this suggests volume dominance by the bulls. 

Despite lower daily volume, today was a day of solid gains for the market indices. Several stocks hit new highs, such as QIWI which gained +20% today. Several stocks are testing their 50 EMAs, which could be positive sign for upside moves that will trigger 50/50 trades. ALGN, a prior ProSelect stock, closed above its 50 EMA today after declining steadily since late January. 

The Nasdaq lost -28 points (-0.70%), the S&P 500 fell -12 points (-0.65%), and the Dow dropped -137 points (-0.83%). Today's decline was on higher volume, meaning institutional investors were active sellers today. Declining stocks led advancing stocks by a 7-to-3 ratio, and down volume beat up volume by a strong 5-to-1 ratio. 

The S&P is still above its 50 EMA and hasn't fallen below it. The Nasdaq is still "below" its 50 EMA and hasn't gotten above it. Something has to give, and it will. This is a time when the market seemingly does nothing for so long that it lulls the trader to sleep. The Pro remains vigilant, knowing that eventually things will break, and the opportunities will be there to profit. 

The Nasdaq lost -31 points (-0.76%) and the S&P fell -17 points (-0.94%). The Dow declined -167 points. The Russell 2000 was off by -7 (-0.65%). 

Today's decline occurred on significantly increased volume and range expansion. This means the it was a day of institutional selling. The decliners out paced advancers by a ratio of 7-to-3. Down volume had an even bigger edge over up volume with a 9-to-2 ratio. Market breadth was never positive on the day; it hit a high of -555, a low of -1,747, and closed at -1,212.

Volume on the Nasdaq and S&P were was lower for the second day in a row. Two days of lower volume raises the chances of a big range day tomorrow or the next day. Decliners led advancers by an 8-to-5 ratio and down volume out paced up volume by 9-to-4. 

Since the correction, the Nasdaq has been weaker than the S&P, and the Naz has already fallen to its 200 SMA. The S&P, however, has been holding steady above its 50 EMA. I think the S&P is the index to watch; if it drops below its 50 EMA, then this correction will likely be longer and deeper. 

The market ended another day with mixed results. The Nasdaq fell -13 points (-0.33%). The S&P hit a new all time high of 1,902, but backed off the high to close at 1,897, essentially flat. The Dow hit a new high of 16,735 and closed at 16,715, up +19 points.

Volume today was lower across all three indices. Decliners led advancers by a 7-to-5 edge. Down volume beat up volume by about the same ratio. Market breadth closed at a weak -546. Part of the low volume issue is that we are entering the vacation period of spring/summer. But part is due to the low ADX cycle and the fact that the bull market is getting old. 

The S&P hit a new high, but could not close strongly above it. If it cannot breakout, then it is likely to test back down to support again. The Nasdaq closed back below its 50 EMA today.

The Nasdaq and S&P both closed the week "inside" the prior week's range. That means there was no directional push outside of the prior week's highs and lows, so there was little information given about market direction.  

The S&P is still stuck in a weekly/daily range pattern with low ADX on both timeframes. The Nasdaq, on the other hand, has a low weekly ADX, but high on the daily (29). The daily ADX is rising, and the +DMI is dominant; this is not a good signs for the bulls.

Volume was average for the day. Advancers beat decliners by a 2-to-1 ratio. Up volume led down volume by almost 2-to-1.The market was likely influenced by testimony from Janet Yellen, Fed Chairwoman, as well as news that Russia was pulling back troops from the border in Ukraine. Nonfarm business labor productivity declined -1.7%.

The VIX closed at 13.40 in sideways action.This suggests there is not a lot of investor fear; investors may be complacent.  A spike up in the VIX might be needed before the market can rebound strongly. 

Volume increased for all three indices, making this a selling day for the BIGs (big institutional guns). Decliners outpaced advancers by 2-to-1 and down volume led up volume by a 3-to-1 ratio. 

The Nasdaq fell  +29 points (+0.72%), the S&P rose +8 points (+0.48%) and the Dow advanced +86 points (+0.53%). 

Volume was lower today, and less than average for both the Nasdaq and S&P. The Dow's volume was above average. Advancers outpaced decliners by a 3-to-2 margin, and up volume beat down volume by a slightly better 7-to-4 ratio. Market breadth was never positive during the day, and it closed at -1,032. There were few buyers in the market today.

Today's market action formed a daily pivot high in the Nasdaq, essentially causing another rebuff and the 50 EMA. The last 3 tests of the 50 EMA have failed, a bearish sign. The Nasdaq could make a run for its 200 SMA again. 

Meanwhile, the S&P, which looked close to testing new highs, backed off and formed a pivot high on momentum divergence. The S&P is now going to test its 50 EMA (from above, unlike the Nasdaq). 

The Nasdaq closed up +14 points (+0.34%) and the Dow gained +17 points (+0.11%). Volume was weaker than Monday's volume, and all three indices traded below average volume. Breath, which went as low as -1718 in the morning session, closed a -69, not strongly positive. Advancers and decliners were about even, although down volume was heavier with a 3-to-2 edge over up volume.

Today was a missed opportunity for the market to have strong up day by taking advantage of a down open that trapped shorts. Instead, the Nasdaq close below Friday's high and still below its 50 EMA. The S&P also closed below Friday's high. So we're still in "wait" mode to get a strong statement about market direction.

The Nasdaq has been unable to pop above its 50 EMA, and daily RSI 20 remains weak, closing Friday at 42. In contrast, the S&P and Dow, containing more large cap and cyclical stocks, both hold above their 50 day EMAs.  The S&P is acting stronger than the Nasdaq, a change from 2013 when the Nasdaq led the way up. The Nasdaq and S&P are not in sync; this is market that has been changing its character since the correction began. 

At the close, the Nasdaq closed midrange (indecision) and below its 50 EMA. This makes the index still vulnerable to a retest to the 200 SMA. A pop above the 50 EMA would be a strong signal that the market is ready to go higher. 

The S&P had an opportunity to breakout to new all time highs, but today it closed midrange (indecision). While it is above its 50 EMA, it is stuck in a daily range pattern, and a breakout will need high volume to prove that the S&P is not simply testing back and forth in the range pattern.

The Nasdaq gained +21 points (+0.52%), the S&P rose +3 points (0.17%), and the Dow closed dead even (16,051). Volume was higher today, despite the lack of directional conviction. Advancers and decliners were about evenly matched. Up volume and down volume had a 1-to-1 ratio.

In economic reports, jobless claims ticked up to 329,000 (the expected number was 315,000). Durable goods orders were up, a sign of buyer confidence (durable goods are cars, washers/dryers, computers, etc).

Geopolitically, Russia is beginning military exercises on the Ukrainian border. There are reports that Ukranian military forces killed 3-5 pro Russian protestors. Russia is likely to use any major clash as a reason to move into eastern Ukraine and establish a foothold. This would mainly affect European interests.

The Nasdaq Composite gave back -34 points (+0.83%) after gaining +39 on Tuesday. The Nasdaq also closed -5 points below Tuesday's low, giving the edge to the bears. In contrast, the S&P and Dow both had inside days (indecision). The S&P lost -4 points (-0.22%) and the Dow declined -12 points (-0.08%). 

Volume was lower across all three major indices. Advancers beat decliners by a slight 5-to-4 margin, while up volume was even with down volume. Breadth for the day was weak in both directions, not strong enough to create range expansion to the upside or downside. This was  day that did not provide much information on the short-term direction.

Tomorrow's economic reports: Initial jobless claims, continuing claims, durable goods