MIDDAY THOUGHTS

We have been watching the semis and the financials closely. They have been the ports in the storm.

The SOX, as we write this is pulling another 9/12 and 10/13. Both those days teased breaks to the downside only to reverse up at important support. This is vital to the market that it holds. It is currently a tad below the 50 day but working on a reversal. Notice on 10/13, it undercut and finished above.

The financials started ugly today and are now up. They remain in range…nothing great to the upside but no harm to the downside.

On a positive note, we wrote yesterday that the transports looked ready to go topside. Lower oil prices definitely are helping. Today, transports are again teasing the move higher. Strength in airlines(big beneficiary of lower oil)helping out.

After that, pretty much a random mess.