PRE MARKET NOTES

Let’s do good news this morning.

Major indices continue to hold the 50 day average off of this 5 week pullback. The pullback remains constructive overall though there have been a few sectors in trouble.

The financials have been hit below the 50 day moving average but have held this first move down. If the next move is up and back through the 50 day average, a low gets put in place. Financials start reporting next Thursday with C, JPM, PNC and WFC.

Commodities have also been under pressure now trading below the 50 day but like the financials, they are holding after the move lower. If they also can turn back up and above the 50 day, a low for them gets put in place.

If both of these areas put in a low, the 50 day pullback will be a definitive hold in where the market can get going again. Of course, we will need to see that first but it is not out of the question…at all.

Growth leaders still working. While we have seen a few go by the wayside, it is just a few.

The NASDAQ and NDX remain strong.

We will leave it at that. So far, a normal and constructive 5 week pullback into support. SO FAR.