Eoin Treacy's view As the USA's east coast is battered by Hurricane Sandy and uncertainty about the outcome of the Presidential election remains a concern, not least because of the candidates widely differing views on how to tackle the fiscal cliff, investors have been subdued by a steady decline on Wall Street over the last month.

The Nasdaq-100 has pulled back to test the region of its 200-day MA. Over the last three and a half years, the trend mean has offered an area of support on a number of occasions and while the Index has dropped below it on occasion, it has successfully pushed back above it within a number of weeks of the breakdown.

If we address the market from the consistency characteristics we base so much of our analysis on, then a pattern of lengthy ranges is evident since the early 2009 lows, with each finding support above the previous congestion area.

The 2010 range peaked near the psychological 2000, had an amplitude of 359 points and persisted for approximately six months.

The 2011 range unfolded following a test of 2500, had an amplitude of 404 points, found support near the upper side of the 2010 range and persisted for eleven months.

The 2012 range has held more of an upward bias but the April to June reaction also found support in the region of the upper side of its underlying range. The 200-day MA currently offers a potential area of support. However, the failed upside break posted in September raises the possibility that the lower side of the range near 2500 will be retested. If the benefit of the doubt is to continue to be given the upside, the Index will have to find support between 2500 and 2600.

A sustained move below 2500, held for more than a week of two, would constitute a major inconsistency and would force a reassessment of the medium-term bullish hypothesis.

In the technology sector, Apple has pulled back to test the region of its MA. IBM is not in the Nasdaq but is emblematic of the technology sector and has also pulled back to test the area of its 200-day MA. Google, Qualcomm and Teradata have similar patterns. Amazon and Oracle found at least short-term support near their MAs last week. Microchip Technology, Autodesk, Altera and EMC Corp have pulled back to test potential areas of support near their most recent respective lows. Citrix Systems and Check Point Software are trending lower, and while oversold in the short-term, breaks in their progressions of lower rally highs will be required to question the medium-term downward bias. Both Microsoft and Intel have pulled back to potential areas of support but clear upward dynamics will be required to check momentum.

In the healthcare sector, Amgen tested the $90 area last week and looks susceptible to mean reversion. Gilead Sciences has paused in the region of $70 and a process of mean reversion appears to be unfolding. Biogen is in the process of reverting to its mean. Alexion Pharmaceutical pulled back sharply from its overextended peak last week. At a minimum some time will be required to rebuild investor confidence before the uptrend can be resumed. Celgene, Holologic and Life Technologies have all paused in the region of previous areas of resistance and are testing their respective 200-day MAs.

Express Scripts (pharmacy) broke out of a more than yearlong range in August and is consolidating above the previous peak as it unwinds the short-term overbought condition. A sustained move below the 200-day MA would be required to question medium-term scope for continued upside.

Stericycle (biomedical waste) posted an upside weekly key reversal last week from the region of the 200-day MA and is now testing its all-time peak. A sustained move below $40 would be required to begin to question medium-term scope for continued upside.

Cerner (healthcare management systems) also posted an upside weekly key reversal from the region of its 200-day MA last week.

Mylan (generic drugs) rallied impressively last week from the region of the 200-day MA to post a new all time high. A countermanding downward dynamic would be required to question potential for additional upside.

Elsewhere in the Index, some of the previous high fliers such as Monster Beverage, Bed Bath & Beyond and Dollar Tree Stores have lost uptrend consistency and will need to sustain moves back above their MAs to question supply dominance. Starbucks has so far held its move below the trend mean and will need to sustain a move back above it to question potential for an additional test of underlying trading.

Ross Stores, Costco, Autozone, O'Reilly Automotive and Whole Food Markets have at least paused in the region of their respective 200-day MAs and will need to at least hold in the current area if the benefit of the doubt is to continue to be given to the upside. Expedia remains in a consistent uptrend.

Adobe Systems is testing the upper side of its yearlong range and a sustained move above $35 would confirm a return to medium-term demand dominance.

Paccar rallied impressively from the region of the 200-day MA last week and a sustained move below $40 would be required to question medium-term scope for additional upside.

From the above shares, it is increasingly evident that a process of mean reversion is underway, particularly among some of those which had been most overextended. However, against this background, there are still a number of shares which are in the process of completing lengthy consolidations and look more likely than not to advance.