PRE MARKET

PAY NO ATTENTION TO THE DOW BEING HIT A BIT YESTERDAY. A/D was positive and tone is positive.

On top of that, indices are trading tightly here…especially NASDAQ and NDX.

Maybe we rest here or pull back because we sit at resistance. Remember, people who bought in late January are now close to getting their money back…and will tend to sell thanking the lord they got their money back. That creates congestion and resistance. But if nothing changes, it is just a matter of time before we get a range breakout.

Also, notice stocks that were hit hard on earnings like a NFLX and NVDA rallying. When the worst stuff rally, it is good news and an NVDA actually sets up.

We also want to add while emerging and other markets are rallying, we consider it a rally in an overall bearish phase. The U.S. market remains the place to be…by a wide margin.

BABA is up about $7 even though earnings were anemic. Sales growth was strong. Been dead money for almost a year after a good run.

WSM also gaps up as RETAIL remains strong. Keep in mind, a URBN gaps up yesterday and completely reverses…LOW was up $10 but finished only up $6.