Pre-Market Update SPX, COMPQ, BPCOMPQ, YM, NQ

S&P 500 chart (SPX) - Daily chart
The daily chart shows that the SPX has touched it's uptrend line and is down 0.91% at 1270.84 Despite this drop, I am neutral on the SPX. Bulls live above 1246 and Bears live below 1246. A breach of the uptrend line would put the SPX in danger of overlapping, even though we have already technically overlapped. However, there is still enough distance away from overlapping and we are not there yet. Some indices are having bearish Aroon crosses yet they are not rolling over on the PPO, and some Williams % are weakening and some aren't.

The Nasdaq Composite (COMPQ)- Weekly Chart
The weekly chart of the Nasdaq is bullish. As you can see by looking at the chart the COMPQ has been trading neatly within it's uptrend channel since it placed it's lows in April of 2005. Remember the following: the trend is bullish, the pattern treacherous, yet bias remains neutral. Furthermore, volume on up weeks overtakes the volume on down weeks.

The Nasdaq Composite Bullish Percent Index (BPCOMPQ)
Let me ask you this question. Why does the BPCOMPQ index keep making new highs on broader market down days? The answer is this, because more stocks made new 52 weeks highs than they made 52 week lows. 138 new 52 week highs were made in the COMPQ, this performance is just as good as the NYSE and the AMEX. It is possible for the market to have topped with this type of performance, despite the fact that more stocks now are making new highs.

Dow Jones Industrial Average Futures - YM Daily chart
The YM chart illustrates that it is in a possible continuation diamond pattern. The INDU is the only index that took the market higher this week, and it bounced us off of the lows last week. The Dow is outperforming. However, it has been a laggard, yet now the Dow is holding the broader market up. Should YM take out the 72% retracement level at 10970 it is bullish. Should YM take out 10672 it is bearish. Stochastics look bullish.

Nasdaq Futures (NQ)- NQ Daily chart
Nasdaq Futures are sitting right on the uptrend line at 169350. Look at the MACD. There appears to bearish divergence within the moving averages of the MACD even though the histogram contains no bearish divergence. Is this that imprtant wand what do we look at? All that really matters is the price action. Price action always takes precedence over any indicators or oscillators.