PRE MARKET NOTES

After yesterday’s decent reversal, futures down but hardly down. Of vital importance yesterday: the Dow and S&P held on to their 50 day moving average. This is the first visit to this important area since November 7th and is quite normal to finally happen. There is nothing wrong with a pullback into it as long as it holds. Duh! Keep in mind, underneath the surface of the indices, things not so great…especially the very important and vital financials that remain under pressure. Continue to watch as just about all names trading below the 50 day with some much worse.

DRI and RHT with little gaps to the upside off of earnings. Darden announced they are buying Cheddars as they try to expand.

TESLA up again as someone takes a 5% stake in the company. TSLA held the 50 day a couple days ago and has ripped to the upside since.

In Trumpland, now pivoting to tax reform…but looks like there are differing factions there also. The new president has learned quickly and the hard way that Washington is a lot different than the real world.