PRE MARKET

We have been telling you that over 50-60% of the market is already in poor shape. We have been telling you the highs of Jan 29 were the highs for now (though for a moment, the NDX and NASDAQ hit new highs!) We have been telling you that the lows of Feb 9 would not be taken out any time soon. We have been telling you to expect more ping pong, meaning back and forth action without getting much headway. We have also been telling you that the NASDAQ/NDX/SEMIS were where most of the relative strength was.

We saw late last week a slight loss of that relative strength. After all, a few names were beyond extended. This morning, looks like those areas will lose a little bit more. Facebook (Fb) is the excuse but we do not rationalize. Let us just say if those areas that were leading top out…you fill in the blank.