Equity indices have been chopping around in recent days, and the action seems to be getting less interesting by the day. Overall this looks like a bullish consolidation, with SPY, QQQ holding above their daily middle bands, IWM trying to break back over the daily middle band, and only DIA holding below the middle band there.

There is a lot of talk about a possible larger decline brewing, and with Vix in the 18 area, and a lot of uncertainty about the presidential election, currently too close to call, as well as a couple of ongoing wars, there is certainly enough potential news around that could help a decent retracement along.

The problem is that the setup for a large decline here is currently thin, but it could improve. The current move looks like a bullish consolidation but if that delivers and we see another move up, there are some significant levels that could be hit to improve a topping setup here. In part because there really isn’t much going on today on the equity markets, I’m going to have a quick look at that today.