Sam Collins

Bulls or Bears: Who's Really in Charge?

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August crude oil fell $1.60 to $69.89 a barrel on data that showed crude inventories rising and gasoline stockpiles increasing. The Energy Select Sector SPDR (XLE) gained 4 cents and closed at $48.09.

August gold gained $13.90, closing at $941.30 an ounce, and the PHLX Gold/Silver Index (XAU) gained $5.31 to $144.33.

What the Markets Are Saying

Yesterday the S&P 500 and Nasdaq both failed to hold above the top of their current trading zones. For the S&P 500 that number was 930, and for Nasdaq it was 1,854.

The failure of the "500" to hold above 930 would not normally be all that significant -- especially considering the shortened holiday week and extremely low volume. But the Nasdaq's stumble at exactly the same spot, adjusted for price, may be significant since it has been leading the other major indices for almost a month.

The bulls have to be shaken by yesterday's trading pattern: Following a strong opening, both indices retreated under gradual pressure throughout the day until just before the close. During the last half hour selling accelerated -- an indication of weakening demand at the top of the current trading zone.