Stocks fought their way back from early losses yesterday, to end the session mixed. The S&P 500 was the day's biggest loser, as it slid 0.5%. The Dow Jones Industrial Average fell 0.4%, while the small-cap Russell 2000 ended lower by 0.1%. The S&P MidCap 400 ended the day at break even and the Nasdaq managed to close fractionally higher.

Internals ended the day mixed. As would be expected following Tuesday's shortened session, volume rose on the NYSE by 44.4% and on the Nasdaq by 30.0%. However declining volume outpaced advancing volume on both exchanges. The ratio of declining volume to advancing volume ended the day at a negative 2.3 to 1 on the NYSE and a negative 1.1 to 1 on the Nasdaq. Since yesterday's volume was bound to be higher than Tuesday's pre-Holliday volume, it would be inappropriate to classify yesterday as a distribution day. Only if volume had been above the fifty period moving average, would we have potentially considered yesterday to be a distribution day on the NYSE or the S&P 500.

Since hitting an all time high last September, the SPDR Gold Trust ETF (GLD) has been in an intermediate downtrend. However, notice that on the weekly chart, GLD has formed numerous reversal candles, as it has established a support level near $148.00. If GLD can find its way back above $160.00, it will likely test resistance at its downtrend line. A break of the downtrend line could result in a significant move higher in GLD. Although this ETF has some work to do in order to reclaim its uptrend, it does appear to have found strong support at $148.00. Further, the significant number of reversal candles on the weekly chart suggests that GLD may soon make a move to resume the long term uptrend.



UNG rallied and closed marginally above its June 27th swing high yesterday. It could find resistance at this level, but it continues to perform well. The broad market now faces key resistance at the two-day high. Although we have seen buying into weakness, we will still anticipate a modest correction from the current levels.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.