Today the market rallied on low volume, led by homebuilders, commodities, and emerging markets. With so many sectors at support, it is difficult to determine near-term direction. However, I am finding more setups for short side trading, and my sector overview hints at a bearish bias.



Today's leading sectors are doubtful leaders for a more sustained rally. It feels as though the market is waiting for some kind of news to initiate the next major move, probably something relating to the financial sector. Therefore, it is more of a day trader's environment until we either break support or experience clearer signs of institutional accumulation. For now, the big hitters appear to be sitting on the sidelines.

Here are some charts I will be watching tomorrow, particularly for short trades:

- SDA broke below support on Tuesday on high volume, then retraced to the 200 day moving average today.



- SBS also broke down yesterday with volume, and bounced today on decreasing volume. It is worth looking at the five year chart to see the trendline break that preceded this week's price movement.




- A: Agilent broke briefly below the 200 day moving average today.