Market Alert - Pre-Market

Futures vs FV: SP +1.50, DJ +4.98; NASDAQ +6.01

Futures are up but it might be a false flag operation as they are not strong, more of a hope move after the Tuesday losses. Those losses were reversals of the Monday gains on some of the indices.

The mood is negative by traders we talk to despite the early upside in futures. Bonds were off Tuesday on more hawkish Fed comments (though really the same comments just rehashed). VIX has dropped and this week bulls are moving toward 60 while bears are moving toward 20. Those are moving closer to the point where they indicate complacency.

That leaves it up to the leaders to hold the line and get through the back and forth. If not, some kind of pullback likely initiates.

Oil: Struggling after the API showed more build than expected.

Earnings: TGT beat BL but reduced guidance. CREE missed BL, LOW missed BL. URBN beat though TL was just in line

Mortgages: -4% despite low rates.

Not a lot of news really. The market will have to work it out on its own.


OTHER MARKETS
Bonds flat: 1.576% vs 1.57%

EUR/USD: 1.1276 vs 1.12801

USD/JPY: 100.65 vs 100.28

Oil: 46.52, -0.06

Gold: 1349.70, -7.20


Watching how the leaders hold near support today. The early upside likely fades and then it will be up to the leaders to hold support and find new bids. If some of these plays don't turn around we will close some out of caution.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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