The overall outlook for equities still seems to be favorable, reinforced by a positive seasonal bias, and yet beneath the surface there are some discordant under-currents.

The renewed vigor of the high beta stocks needs to be considered alongside evidence that many portfolio managers seem to be migrating to the large-cap defensive stocks, including the utility stocks.

Traders may be keeping a closer eye on the US dollar, which seems to be showing more signs of life than its previous appearance of rigor mortis was suggesting.

Overall positive sentiment could well prevail again for equities today as the US dollar seems to be reverting to its default mode of sliding against key currencies.

The Russell 2000 chart has been slowly transforming into a more positive formation in recent sessions, and this would suggest that a seasonal rally could be rewarding to the small cap stocks.

The confusion in the FX arena is being felt across most asset classes.

The exchange traded fund which tracks the spot price of silver looks vulnerable to a setback.

The weekly chart of the S&P 500 reveals three key thresholds that this index faces in terms of future upward progress.

As attention shifts towards the Non Farm payrolls number on Friday, it would not be surprising to see some cautious trading in today’s and tomorrow’s sessions.

PGF is a sector fund which tracks the price and yield performance of the Wachovia Hybrid & Preferred Securities Financial Index, and recent price action suggests that an extended pullback from heavy volume selling in early November may have run its course.