Today on the Marketbeat: Another inside day

Market #'s @ Close:

DOW: +86

S&P: +8

NASDAQ: +1

RUS2K: -4

TSX/S&P: +38

VIX: -0.73

Internals:

Core Sector List: 9/7 to the Bears

NYSE

AD LINE: -890 (Down over 2000 ticks at low of day)

BREADTH: 1.5/1 neg

NASDAQ

AD LINE: -580 (Down over 1600 ticks at low of day)

BREADTH: 2/1 Neg

Today on the Marketbeat: Another inside day

Market/Price action was again king today as the major indices enjoyed another inside the pivots day. The day got off to a decent start, flirting around the days pivot point (860 on the ES futures). It stayed within this range until the early afternoon hours when the sellers took control and put the indexes down to their S2 (support 2 pivots). At this point the market turned on a dime and rallied hard into the close finishing above today's pivot on the YM and slightly below it on the ES, closing the day with a small gain. 

Chart of Internals (Click to enlarge)

Under the hood, once again the internals told the story behind the price action with the Breadth and AD LINE, combined with the $TICK continue to be a active traders best friend.  The breadth was bearish for most of the day, but in the last hour of the day when the markets rallied the Breadth took a sharp turn up going from 8/1 negative to close around 1.5/1 on the NYSE. The AD Line lost some ticks closing around 900 ticks, but comparing the lows of the day having a -2000 tick reading at the lows that isn't so bad. The Tick spent most of the day in the negative side, but moves up sharply as the market rallied. What interesting about the TICK is that it closed a big body candle at -1306, at 2:45, when you look at the ES chart that's the exact candle where the rally capped off, showing once again that when the Tick closes below or above 1000/-1000 it gives a good shot that a reversal is on its way. 

Chart of Tick vs ES (Click to enlarge)