Opening Indications

As you know, we've been looking for the SPX/SPY specifically to break above last Friday's intraday high, the other averages were welcome, but the SPX was the most important. As of yesterday the underlying trade in the QQQ and IWM was much weaker than that of the SPY and DIA and we are seeing that this morning in relative performance.

The idea was to see this push to new highs for this leg of the move, but on weak underlying tone/trade, I didn't expect it to be so weak right off the bat. The only average to have confirmed is the IWM and that's because it fell back to 3C rather than 3C moving to it. The SPY is the strongest, but I say that on a relative basis, it has not confirmed although it's trying.

The TICK data this morning is horrible for the SPX making a higher high, it started on the open for the first two minutes at nearly +1500 (which is good) and then + 1200, but has spent the rest of the morning under +750 which is VERY mediocre and in this environment, downright weak which is what we wanted to see, I just didn't figure it would be this weak this fast. Because of this, it makes the possibility of a downside reversal intraday (as I have suspected) much greater, but we are still in a.m. trade and I've learned not to make too many assumptions based on a.m. trade, but that is what we have so far.

I'll be bringing you more in a few minutes, there are other assets I'm checking on now.