By: Kent Engelke | Capitol Securities

In some regards, yesterday was a quiet day. Oil slipped on concerns of a continuing supply glut, the NASDAQ fell about 0.50% while the Dow was essentially unchanged.

Is the NASDAQ topping out? The recent volatility may suggest a peak has been achieved. Typically, a stock/sector reaches an intermediate apex when there is a violent recovery following a moderate selloff. If a pattern of lower highs and lower lows occur, then the odds of a prolonged period of underperformance increases.

Regarding oil, oil is now in a bear market falling about 21% from its highest close for the year, on February 24th at $54.45/barrel. The vast majority of the decline has occurred since May 25th or the date that OPEC extended its production cuts until March 2018.

What will happen today?

Last night the foreign markets were down. London was down 0.62%, Paris was down 0.89% and Frankfurt was down 0.59%. China was up 0.52%, Japan was down 0.45% and Hang Sang was down 0.57%.

The Dow should open nominally lower. Oil shares have tumbled in 2017 on fears that the supply glut will persist. Oil shares now account for just 6% of the S & P 500, the least since 2004 and down from a high of 16% in 2008. Technology however is hovering around all-time highs of 27%. The 10-year is unchanged at 2.16%.