Opening Thoughts

It's a little too early for opening indications, but from what I see so far the only average with confirmation is to the downside, the IWM which I have been saying the last several days has had very poor underlying trade as it already cleared out all the stops/orders last week, it's the only average to gap down and pretty big for the open and it's the only average with 3C confirmation.

TLT, the flight to safety trade was showing positive divergences/accumulation yesterday and has actually gapped up today.

This is what we talked about yesterday, close the Q's strong (while no other market confirmation indicator went along with the closing push), gap them up this morning and there's where we have the possibility for the serious deterioration that started yesterday but was held back at the 5 min chart.

I can't predict the future and especially not this early, but everything thus far fits in with what we expected, the IWM's underlying weakness in recent days and the gap down were an added bonus.