A rough week ends on a somewhat quiet note. While the broad market indices more or less finished the day flat, they lost ground on the week. As compared to last Friday's close, the Dow Jones Industrial Average (DJIA) and Russell 2000 (RUT) lost 2.8%, the S&P 500 (SPX) dropped 3.2% and the Nasdaq Composite (COMP) was hit for 4.7%.

A look to today's sector action shows a very mixed and choppy view. The Regional Bank HOLDRS (RKH) was the standout gainer. We had milder strength in the Broker/Dealer Index (XBD), SPDR Homebuilders (XHB), and Semiconductor HOLDRS (SMH). Meanwhile, the US Oil Fund (USO) and Oil & Gas Index (XOI) were the weakest areas. Many groups finished near the breakeven line.

Chart Courtesy of Thomson Financial

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As far as my takeaways for the SPX and DJIA, they were summed up last night in my comments about the break of support. The S&P 500 had been bouncing along the short-term zone that sits near 1270. With that now broken, the July lows are the next major level. That leaves the SPX trapped between support near 1200 and resistance near 1270. The DJIA shows a similar pattern, with levels roughly defined at 11,800 and 10,800.

In other words, both indices finished the week near the mid-point of the two major levels. That means we have some wiggle room before we get to one of the "critical" points. As we watch that play out next week, keep an eye on the Nasdaq Composite. As the chart below shows, the COMP is nearing support that marked the lows in March and July. I would view a breakdown here as a bad sign, but we aren't there yet.

Chart Courtesy of Thomson Financial

Chart Courtesy of Thomson Financial

Chart Courtesy of Thomson Financial

And that is where I will pick up on Monday. Have a great weekend!