Not a great day yesterday but not the end of the world. FINANCIALS were strong as C reversed early losses to have a strong gain. That could change for FINANCIALS this morning because JPM had its first miss since 2014. Notwithstanding another reversal to the upside, JPM is trading down $2.60…as we write this. Futures were up strong last night but have faded because of earnings. Other earnings not thrilling has another DOW name UNH down about $4 pre-market. Both JOM and UNH have been recovering off lows but both still trade below all moving averages. Additionally, SHW really coughs one up. down in the neighborhood of $35 pre-market. WFC is flat on earnings. Of course, this can all change by the end of the day. Another 20 FINANCIALS names report this week including BAC, BK, CMA, GS, PNC, USB, AXP, BBT, SCHW, MS, STI.
CHINA was strong overnight…what else…easing. Lower taxes and rumors that CHINA will now buy up its own market. Yippeee.
Major indices are in and around massive resistance as well as the declining 50 day moving average. It is normal to settle down around here. If we can get controlled and rotational action here, it will go a long way in potentially sending prices higher but leave no doubt, there remains a clear lack of any leadership (except for some of those SOFTWARE names we have highlighted) and still still have to worry that this is nothing more than a counter-trend rally. We are open to all outcomes especially with the fed at the market’s back now.