The 1320 target for the S&P 500 (^SPX) coincides with the 50% retracement level and becomes key target in the short term. The real test as to whether this current move is more than a bear market rally will arise as we approach the 1350 level.

The SPDR Metals and Mining sector fund, XME, has been moving downwards in a staircase fashion since the critical trend line break in early July, and leg 3 of the bearish pattern could soon be reaching another inflection point.

Broadcom (BRCM) could be vulnerable to further selling after slipping away from a recovery channel and with volume increasing as range is expanding on the downside.

Amgen (AMGN) appears to be defying gravity at current levels.

The exchange traded fund DUG provides a useful inverse trading vehicle for natural gas and crude oil. The breakdown of the upward trendline in the last few sessions is worth monitoring for signs that the trend has changed again.

A correction is under way in the biotech sector and the chart for IBB suggests that a momentum top may be in place.

The VIX underlines the fact that there is far less fear in the market of any imminent financial collapse than there was in March, or even in early July.

Staples (SPLS) could resume its upward bias after retreating to the $24 level.

Qwest Communications (Q) shows intermediate-term positive MACD divergences and a bullish short term flag pattern.

Forest Labs (FRX) shows the kind of pattern that is seen on a number of charts in the health care/pharmaceuticals sector.