Market Commentary – September 1st, 2011

A Few Thoughts Before the Open:

In looking at the yesterday’s charts of the various sector indices that I track I noticed that many of the indices rallied up to their 40 day moving average before turning back lower yesterday.  This may be just normal activity before the market continues it move higher,  or it may be a point of technical resistance that cuts short the current market retracement.  The next couple of trading days should clarify the situation.

I am looking for trading volume to be light ahead of the Labor Day weekend.

I’ll be back with more updates tomorrow morning.