The market did not do much today after another run in the Dow yesterday and the Nasdaq pulled back.

Amazon announced better then expected earnings so maybe that will give a boost tomorrow or maybe a sell the news? I think they did  5 cents so a very high PE stock but going into their holiday season. Which is a good place to mention that the Tiger Store is in association with Amazon so you shop from StockTiger the same as you would from them but it would help support us in a small way. Tiger Shop

The Dow shows not signs or weakness though still overbought.

Had not shown the NYSE in a long time - it also is at new high but it has been making new all time highs for a long time so it shows how the Dow is not correlated very well with the broad market. Note how it is quite far from the 9-day EMA and at the top B band.

This shows the Nasdaq to the S&P 500 and it is at the trend line. The four letter stocks are important for the broad market to rally so a break here will signal a market pullback.

Sox not well and last chance to bounce...

And the Sox to S&P 500 ratio chart show in comparison how it is underperforming.

Russell 2000 not strong but is holding in so far

This may be interesting as for many year gold was outperforming the Dow but on this monthly chart you can see the trend line is just breaking so if it continues it shows the trend of the Dow to beat Gold is likely to continue for months.

Tomorrow Wednesday - the Fed will announce if they will raise rates or not and their wording will be very important. Here is a chart of rate hikes in the past.

"Scott Brown from Raymond James expects the Fed to retain a slight tightening bias in the Fed’s post-meeting policy statement. This is due to the fact that the Fed officials view the current pace of core consumer price growth as unacceptably high. However, on a positive note, inflation expectations have declined significantly from the levels seen in spring. Furthermore, lower energy prices have driven overall inflation down and slower growth is expected to ease pressures on core inflation in the near term. ABN AMRO’s Steven Ricchiuto also holds the opinion that the Fed will emphasize that inflation is its primary concern in the post meeting policy statement. Ricchiuto believes that the Fed will hold the funds rate at 5.25% through the end of the year and a bit beyond. However, the economists expect the short-term rate target to be at 6% by the end of 2007. "

We have a lot of stocks on the watch list. Today we removed many old ones from the list as they are no longer in close range. Check the current list for the update as all white ones are current.

Here are a few to watch

FRG has a level at $6.62 for at least a scalp.

BPG looks interesting at $0.82 above the 50-day EMA - and energy getting active again.

WSM has a break above $35.00 but has possible resistance at the 200-day at $35.53.

IAAC at $28.50

KNOL tried to break out today above $11 and failed - it may have to consolidate but sometimes they can try again quickly.

Wanted so show this short as we have few and had showed this chart many times. It finally got a downgrades today after dropping so much and that brought in huge selling so likely more downgrades to come. This was not on our official list as we have traded in and out of it so much in the chat room but nice overall move from $30 to $14 so far.

BVX was a nice winner today as we had it as a buy at the break of the flag and it sure did and the typical first target is the former high which it reached but it is set up for another break out at $9.00

We showed the steel sector chart in the last update and said it was likely to break out and it did today.

Here is a list of some of the steel stocks and the moves today for your reference.

One of the stocks AKS is back to a break out area at $15.95.

We will end for today with a look at some stocks that have pulled back. We have not officially put them on a buy list as we have so many now but want to show them as may like to play pullbacks.

THLD has their CFO resign and no reason given and this often shakes up a stock. Note how it pulled back right to the trend line support and the 50-day EMA so if you do reenter this then that is the stop area. I generally do not like to play a stock with high level management changes.

FDRY pulled back to the 50 and 200-dayt and closed with a hammer on very heavy volume so this may be a reversal and continue up..

NICE is almost back to break out are and this may be support. If it fails then watch the 50-day area but the low volume pullback suggest that this will be going back up.

MSPD does not look so good as it is below the 50-day and the Nasdaq has not been so strong but as it is still above this trend line it is worth watching.

NBIX another one now back to break out support and the 50-day so needs to hold support here to stay as a valid setup.