This does look healthy with SPY holding Q4P, DIA & NYA recovering Q4Ps, QQQ still above all pivots, IWM recovering the Oct to regain all pivots as well. This is exactly in line with my recent quarterly and monthly chart analysis that gave the edge to USA stocks and oil and a bearish tilt to safe havens TLT and GLD.

There are just two problems - SPY and DIA OctPs are still resistance, and more importantly, the crowd per ISEE seems to think the market in Q4 can only go up. The opening ratio of calls to puts was one of the highest I have ever seen. Though sentiment faded by the close to merely a high reading, things are just far too complacent here.

If you have followed my comments, you may be short TLT at the highs, or out of any recent longs; were not surprised by the GLD drop, as many have been; and have been long the leaders tech, semi-conductors, biotech, China on the September pullback, and recently adding free cash into oil or related vehicles. This is a good place to be right now. I just wouldn't be surprised at more trouble for stocks. DIA is the lagger, so hedge if another break below the Q4P or reduce on the long side.

SPY below.