Early Market Update

 All of the major averages put in bearish engulfing candles yesterday, some more powerful then others, but all on high volume. The Dow trapped about 7 days worth of longs yesterday .

 After yesterday's negative divergence at early strength, today thus far is relatively quiet, 3C is lagging the DIA a bit in early a.m. trade.

 The NASDAQ 100/QQQ saw huge volume on a the same engulfing candle, catching about 3 days of longs.

 This has the look of a false break or head fake move in yellow, 3C is still leading negative here.

 The SPY caught about 5 days of longs.

Since yesterday's distribution at the highs, the SPY is pretty much in line this a.m.

We want to see confirmation of yesterday's bearish candle, it usually comes the next day, but as long as a new high is not made, it can come within several days and still be valid.

Early Sector performance breaks down like this..

So far sector rotation is also pretty quiet, the only standouts are the defensive Utilities and Staples, the somewhat defensive Industrials (move toward blue chips typically) and I note discretionary just because it hasn't done much over the last few weeks, remaining very even, not jumping up or down and this a.m. its down for the first time I remember in a while.