Inter-market strategies seem to be flourishing with a kind of predictability which makes some uneasy. This is related to the phenomenon of increasing correlations across different asset classes where the common denominator is the prevalence or absence of risk aversion.

DBB, a sector fund which tracks base metals, looks technically vulnerable.

A lot of attention will be focused on Goldman Sachs (GS) today.

The daily chart for the S&P Midcap Index (MID) is painting a picture of a bear market rally which is on the verge of rolling over.

There was a lot of spinning yesterday of the AA earning statements. Traders were not buying the recovery story and the medium-term target would be around $8.50 which is the 50% retracement level.

If the support shown on the S&P 500 near to the pivotal 875 level yesterday is to translate into another leg up for the broad market, the Russell 2000 will need to demonstrate renewed leadership.

RTH, which tracks the retail sector, has continued to erode, but on light volume. The 72 level would seem to be a support level.

The hammer pattern seen on chart for the Dow Jones Industrials, also evident on the S&P 500 chart and the Russell 2000, could be interpreted as a short-term bullish indicator for Tuesday’s session.

XBI, a biotech fund, peeked above its 200-day EMA yesterday and could be on the verge of a breakaway from a cup and handle formation, but this interpretation has to be tempered by very light volume.

XLF, one of several exchange traded funds which track the financial services sector, has drifted sideways since mid-May on declining volume, which is hardly supportive of the thesis that accumulation is taking place.