PRE MARKET NAUSEA

Futures are down about 120 Dow points. Nasdaq futures down about 25 points. As we scan pre-market, lots of yuck. But hey…gold is up!

Remember, we alerted you that financials broke initial support. This is not necessarily a death knell but after a long run, quite overdue. We told you that due to the fact financials have led the market up, we have to wonder if this initial break leads the market down. So far…yes. We know there are political issues and there is some cause and effect here but we try to not to rationalize stock price movement and just pay attention to what we are seeing…and the seeing continues to worsen.

On top of the areas we have highlighted for you as bearish for a while like retail, energy, commodities and recently financials…we now add in worries in industrials, materials and others. We have also told you there was worry on the under-performance in small caps. So…we now watch the all-important 50 day average on the indices as the bigger indices are heading there. A break below and…

Just keep in mind that corrections are a part of the process, an important part. The fact is we haven’t had a decent one since before the election.