I think the argument can be made that for this market to take the next leg up we need to cool off a little digest some of the recent gains and then proceed. That maybe we are currently experiencing. Not a real sell off just kind of drifting lower. The QQQQ & SPY are both trading above all major ma’s and trend lines.

But I continue to see what I think are troubling signs. Tech acts pretty well but energy, small caps, semis and transports are not confirming any move to new highs. Also the dollar etf UUP closed above the 20 & 50 day ma on a decent bar of volume so we may be starting a bottoming process.

I don’t want to sound like a perma-bear, I really am not. But I would like to see some volume, enthusiasm and a better economy to go along with the rally. I just do what the charts tell me.

This week was pretty quiet on the economic front but next week is not. Retail Sales, PPI, TIC Data, Industrial Production, CPI and Housing starts all come before next Wednesdays open. So we may have to wait it out until then.

I don’t have much for you on the trade idea front for tomorrow. Momentum has been tough this week but here are a few things I will be watching tomorrow.

symbol alert ave vol
alxn 43 680 short
ge 16 108
ice 110 1.3
ntrs 43 2.1 short
sun 27 3.2 short
aapl 205 18.1