Pre-Market Analysis 8/12

This was how market fared yesterday:

Dow +0.41%

S&P 500 +0.69%

Nasdaq Comp +1.07%

Russell 2000 +2.28%

Market moved up strongly for the most part of yesterday's session on declining oil prices. The rally was cut short when news about banks having tightened their lending requirements was released.

CHARTS

DOW


COMPQ


RUT


My Take for the day:
Looking at the charts above, and the performance of each index yesterday, it seems that COMPQ and RUT can go up further today.

The divergence between RUT and DOW shows that RUT has strength. With oil continuing to drop, I can't help but feel bullish about RUT today.

DOW - granted that it has made a high that's higher than the previous high, it has done so with declining volume. A bearish divergence in MACD warns of a pull-back from the rally that began in mid July. I don't feel bullish about DOW at all, but am not bearish either (oil is one of the reasons - but it's so volatile now I will keep my finger crossed that it's going to continue to go down).

Economic data to be released today:
0830 Trade Balance for Jun Consensus - $61.9B Prev -$59.8B
1400 Treasury Budget for Jul Consensus -$86.8B Prev -$36.4B