THE CLOSE/PRE MARKET

Futures flattish with the NDX a little better.

ORCL nice gap for a mega-cap. Earnings not that great but better than expected.

Two of our favorite China patterns setting up in flag patterns hit to the downside on news out of China…SINA, WB. Something about regulators stopping them from doing certain things…

Our thought process that BIOTECH was setting up to break out…broke out…and with a fervor . Dang. If you look at the IBB, we are talking an almost 18 month breakout above the $300 level. Little did we know how strong the move would be. It is up again this morning…almost 6% in days for an ETF. It tells you juices are still flowing in beta. Of course, a break back below negates but as of this second, the big money is all over BIOTECHS and should be looked at on pullbacks towards support.

Yesterday was weird. Noticed chemicals,  machinery, industrials and the like rolling over but money came right back into the mega and large-cap tech/internet. Very simply, the 50 day average looks like it is holding this area and now this area looks poised to rally up into the highs of the ugly 6/9 day. Of course, BIOTECH now helping. The A/D was terrible yesterday and even down on the NASDAQ with it up almost 50 points.

The tape is as split as they come. On radio yesterday, I read off the list of things to avoid and the list is long. We keep being asked about energy. Since 1/30, we have been telling you to avoid. No doubt, we will see bounces. We have seen a few. In fact, it is again oversold and can bounce but the main trend remains down…so careful. There will come a time when the bottom is put in. Let the bottom form.