Good morning, hope you all had a good rest and are ready to get back with a bang. We have another gap up this morning, basically nullifying the close on last Thursday, which I guess was more a scare about terrorism than a scare about the economy.
Around the world
Japan resumed its rally mood and had a nice 1% gain while China , which started green, fell to the red and couldn't get up. This kept the futures topped out last night until around 2.15am EST.
Europe took the relay stick and is running hard. A series of strong number from the United Kingdom set up for a New Year's rally and the Euro and Futures have not looked back.
Homeland
We have no news release until 10am this morning so unless their is some other news or bad corporate news this gap should stay until the open.
Futures as they sit at 7:00 am this morning. You can see the rejection of the Thursday stampede has taken the ESH10 back above that 1117 that for me demarks the no man's land trading range (1117-1125).
My breadth indicators all suspiciously moved from Wednesday's bearish signals to neutral on Thursday as mentioned in the weekly video. There was some underlying strengthening that even the close did not shake out. We saw some strength in Banks (GS, UYG, BKX) which we will continue watching today.
NYSE
The NYSE is of particular interest to see if with this gap it can breakout and make new highs. Watching 7238 on the long side and the bears have their eye on 7065.
Conclusion.
To look for more upside watch the banks to see if they strengthen and watch the NYSE and the RUT for regained bull footings. Today money begins to flow back into the markets and that could have a major effect on prices. Watch for breakout sectors today to see where the money is going to work.
Hope to see you in the room or in the markets.
Marlin aka: RedlionTrader
