Morning Update

Good Morning,

In yesterday's Daily Wrap some several end of day charts including some industry groups, averages and individual stocks made some movement in an otherwise very dull day leading to the comment below,

"Toward the end of the day there were some pretty solid positive divergences in the 1 min range mostly, yet not much behind them so I suspected that we'd likely see a move higher tomorrow morning , maybe longer. Here's a few examples of what appeared to me to be a weak move getting ready to start....

However, no movement or migration to the 2 min chart which would normally tell me to look for some early gains and then a failure of those early gains."

Thus far, this is what we have. I don't see anything standing out in futures that would imply this morning's path is about to see an imminent change in character unlike yesterday's open. In my view the movement is good, I don't think we are going to see much unless there's movement and as I mentioned last night, if there's any attempt to get out of the bounce base accumulation that was put together last week, it will be in to higher prices not lower.

So I'll keep an eye on how things develop, whether there's near term confirmation and more upside or whether there's distribution in to higher prices as I believe we will see no matter what, it's more a question of whether the oversold bounce will be aloud to spend all of the gas in the tank for the move or whether they are trying to slip out the back door on this one, both scenarios are useful. The first for tactical positioning and the second would have that and more informational value as small cycles like this are rarely abandoned, if it were, it would be because of something pretty scary for the market.

I doubt very much this is January Effect money coming in to the market.