kaltbaum premarket

After distributing strong open yesterday, futures up nicely today. Now we get to see if the sellers are still out there. I would rather see markets open down than up.

Again…just to make you aware…IBM broke out of a cup and handle pattern yesterday but sales are down 3%…so not thrilled with growth…but technically, really good action. EL also broke out of a handle and actually can be played here…with a stop if it breaks back below $62ish. I would only use partial position on this one.

DHW and GWW also attempted breakouts but pulled in. We will be watching.

A careful and unbiased market watcher has to be watching last week’s distribution combined with yesterday’s action but to repeat…UNTIL THE RECENT MARKET BREAKOUT FAILS AND UNTIL MAJOR AVERAGES BREAK BELOW THE 50 DAY MOVING AVERAGE, IT IS SILLY TO GET TOO BEARISH.