Indecisive Action

 | Oct 07, 2011 | 10:42 AM EDT  | Comments
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Action is indecisive in the early going. The sell-the-news trade may be a little too obvious and, so far, there is some underlying support. The bad news is that Nasdaq breadth is running between 800 and 1350 and small-caps are lagging. Retail is exhibiting relative strength on the better-than-expected jobs numbers, but oil and banks are lagging.

The challenge after a three-day run is there are plenty of extended stocks that need a rest, but the jobs news is helping sentiment and keeping underlying bids in place. The news is quiet out of Europe, which is also helping to hold us up.

I'll be looking for a breakout of the opening range of the SPDR S&P 500 (SPY). With lows of $116.34 and $117.18, whichever falls first should grab momentum as day traders play the break.

Individual stock picking continues to be extremely challenging. The lack of intriguing chart setups and the lack of good leadership forces traders to focus on exchange-traded funds to stay active. My Shark Technical Pick for the Day is RightNow Technologies (RNOW), which is up nearly 4% to $35.66 in morning trading but could use additional volume on this breakout move.

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