Before the Open (Oct 27)

Good morning. Happy Wednesday.
The Asian/Pacific markets closed mostly down – there were several 1% losers. Europe is currently mixed with a bearish slant – losses aren’t bad. Futures here in the States point towards a gap down open for the cash market.
Despite the market making new, across-the-board highs yesterday, there’s been some internal deterioration. Within the S&P 1500, only 58% of stocks are above their 10-day MA. This is well off the steady readings in the 70 & 80% ranges from most of Sept and the first half of Oct. The % above their 20-day MA is at 71%, well off the steady mid 80% readings. The % above their 40-day MA is down to 83% (from the low 90’s). So somehow the market has moved up while internally the indexes are weakening.
This is what I see short term. The S&P has grinded up while being highlighted by a couple sudden vertical moves. A higher high was made yesterday and now the index is trading in a bear wedge. A breakdown takes the index to the 1172-1175 area.

headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers