Looks like Rain

OR a gap down, but at this point it means nothing, the futures and premarket trading are notorious for misdirection. So far my ananlysis stands from last night, we should see some early strength and then..., it's hard to say because the longer 3C timefrmames have deteriorated so much in a day that the best they can do is simply confirm price action, which is to say that they give no indication of a reversal, except that they are deteriorating.

Watch the $116 level on the SPY, if we see the market make it up that high, then I would consider adding or initiating a small short position in any of the trades from 5/2 on the April/May list at the bottom.

Remember, 50+% of the move in your individualt position will be gravitational pull from the market or put another way, "A rising tide lifts all boats". Maybe 35% will be the pull of your stock's sector and the actual stock itself has the least influence over the move. Imagine that! Most people spend all their time looking at stocks when they should be looking at the market and the industry groups for a successful trade.

In any case, even a day down does not show a turnaround to the downside unless it's a big day down on big volume. As I mentioned, I think the most probable outcome is a bear flag and there are a series of up and down days in that pattern so keep that in mind.

Right now, ZSL Long is the only trade I see ad like at these levels.

Remember $116 to $116.50 will be an important level. If you want to know which way the market is likely to close today, (use intraday 3C charts if you have them-if not and you want them, click on the TeleChart/StockFinder links at Trade-Guild and sign up and email me, I'll send the formula to you) or watch for a morning trading range to develop. If this happens up until 11 am-but could form earlier, then watch for the breakout of that range. If we see a breakout to the upside, chances are the market will close up-to the down side, vice versa.

Today is mostly a portfolio/trade management day and information gathering. If you held your shorts from last week when I said "Load up" below the $118.20 level, you just need to be patient and wait. If you are trying to trade around and let them go, then you have a little more work in initiating at the right spot and we'll try to find that spot.

Longs right now should pretty much be confined to 1-2 day trades and limit order trades-make the stock prove itself before you leap. PATIENCE is an individual trader's greatest edge over institutional money-try to be patient.