Merger and acquisition activity was treated as a bullish sign as stocks climbed almost 1%, but technical resistance sent the broader market back to the neutral line. Tech stocks fell 1.0%. Tech’s weakness was even more pronounced in the Nasdaq, which lagged its counterparts for the entire session. Economic data has been showing gradual signs of weakness there’s still an overshadowing concern that will likely keep any rally narrow and in a defensive tone. Trading volume was unimpressive amid this session’s lackluster action.

FEAR METER: The S&P500 implied volatility inched lower.

Stocks largely ended down Friday. The moves came amid light trading and continuing worries about the economic recovery and bearish action in expiring August options. The economy is desperately short of confidence and visibility and the willingness to take risk. The markets are coming off two weeks of losses as traders have been struggling to find a balance between upbeat company news and downtrodden data on jobs, manufacturing, and other economic indicators. The tech-heavy Nasdaq turned slightly higher. Semiconductors closed up 0.4% thanks to leadership from Marvell (MRVL) which reported in-line earnings for the latest quarter, and announced a $500 million share repurchase program. Hewlett-Packard (HPQ) reported in-line earnings, while Dell (DELL) posted upside surprise. Most of the key S&P 500 sectors fell, led by energy, industrials, and telecom, but utilities, technology, and consumer staples turned higher.

FEAR METER: The S&P500 implied volatility slipped.

Disappointing numbers on weekly jobless claims, manufacturing in the Philadelphia region and leading indicators renewed economic jitters. Intel said it will acquire security software maker McAfee for $7.68 billion. Shares of Intel slipped 3.3%. After the close, Dell reported higher earnings and revenue that beat analysts’ forecasts. But shares of Dell fell about 1% in after-hours trading after losing 1.2% during regular hours. Also after the bell, Hewlett-Packard reported quarterly earnings and sales that strongly topped its year-ago results. The stock dipped 0.3% in after-hours trading, after it fell 1.5% during the day. Market breadth was negative.

FEAR METER: The S&P500 implied volatility jumped.

The market was having trouble finding direction as stocks jumped around throughout the day. After falling earlier in the session, shares of Target rose 2.7% in afternoon trading as investors welcomed the company’s outlook for its current quarter. Consumer stocks continue to move higher because of the viewpoint that back to school will be better than people think. Shares of Analog Devices rose 4.4% after the chip manufacturer posted fiscal third-quarter results that beat forecasts. The market has more room to grow in the short-term but trading volumes remain very low.

FEAR METER: The S&P500 implied volatility inched lower on renewed market optimism.

Stocks rallied after the Fed said fears about the central bank’s outlook were “unwarranted” and investors shifted their focus to strong earnings from major retail companies. Analog Devices posted Q3 results that surpassed analyst projections. Its shares rose 1.1%, and more than 2% after hours. We expect more volatility later this week. Trading volumes remain very low.

FEAR METER: The S&P 500 implied volatility dropped on positive news.

Investors remained cautious following four straight losing sessions in the wake of the Fed’s bearish outlook last week. A raft of downbeat economic reports and some tepid earnings results added pressure. Cisco rose 2.6%, and shares of Intel advanced 1.7% after acquisition announcements sparked excitement about other possible takeover deals in the tech sector. Intel is buying Texas Instruments’ cable modem product line. Research In Motion fell on concerns about the launch of its latest smart phone, the BlackBerry Torch, as well as potential problems with the company’s service in India. Market breadth was positive.

FEAR METER: The S&P500 implied volatility index inched lower.

Investors digested disappointing economic reports in the retail and consumer sectors. The Fed said it would start buying government debt in hopes of stimulating lending and in turn economic growth, though investors proved skeptical. Large traders are on vacation and trading volumes remain very low. Dell was accused of refusing to comply with court orders to reveal secret documents. IBM said it will purchase software firm Unica, offering a whopping 120% premium for the marketing analytics company.

FEAR METER: The S&P500 implied volatility little changed.

The market closed modestly lower but recouped earlier losses, as investors digested an unexpected rise in jobless claims and Cisco Systems’ cautious outlook. The market is really oversold and bargain hunters are coming in. Also continuing to drag down the market was the Federal Reserve’s statement from Tuesday. The Fed said the economic recovery is weakening. Oracle sues Google for patent, copyright infringement.

FEAR METER: The S&P500 implied volatility inched higher.

Investors turned pessimistic after China reported slight dip in industrial production during July. A loss of confidence in the economic recovery led to a deep, broad-based selloff. Investors took the opportunity to rotate out of stocks. The QQQQ implied volatility jumped to 25. After the closing bell, tech bellwether Cisco posted a 79% jump in Q4 earnings, but revenue missed expectations. Cisco shares fell almost 5.5% in after-hours trading.

FEAR METER: The QQQQ implied volatility jumped.

As was widely expected, the Fed said it would leave short-term interest rates unchanged. But the Fed gave its most bearish outlook in more than a year, saying the economic recovery is weakening. The tech sector suffered two downgrades of big chipmakers. ntel shares closed 4% lower. AMD shares fell 8%. After the bell, Disney beat expectations, led by rebounding sales at its television networks and movie studio divisions.

FEAR METER: The S&P500 implied volatility inched higher.