Qs

~~ Qs, SPY, SPX, DIA, DOW ~~ daily price actions are showing negative divergences with pre-Labor day holiday trading during summer light volume trading.

As noted that market breadth was showing neg D during the last week after strong rally from 7/15/2008 low, daily price action is pulling back. Daily momentum is now continuing to downside; however, I do not expect a significant pull back as noted that the weekly price action is supporting markets going into Nov 4 election. Markets supports/resistances are major MA, pivots, and trendlines as shown on charts.

With the VP PALIN choice, the Republican side is hopeful and it looks to be more reason to support markets. She is all American woman with whom many could identify themselves with her, especially from women and from working middle class as she is from "school teacher parents". Also, she will get supports from Christians. We can hope for Palin's new energy plan that she will put more attention to "Energy Independence" development. McCain election will be helped by choosing her as he is showing that he is for pro-Americans as many middle class Americans were feeling neglected.

With the McCain-Palin choice, I think that markets will be supported meaning that the low for the year on 7/15/2008 is likely in. Resetting daily price actions and rallying into Nov would be ideal for the election year.