Since the overnight market could not trade past the 62% correction of yesterday afternoon's down wave, I felt that today would most likely be a down day.



However, up to 1030 ET, the Discretionary Stocks were more bullish relative to Staple Stocks than I liked for a bearish market. Also, the Financial Stocks were not making a lower low which increased my concern. But as the market tested the 0930 ET open, the Financials were not validating the futures higher price.



The $TICK was also showing some weakness in momentum as the market tested the 0930 ET open, which often acts as support or resistance. Indeed, the market did retreat after that test of the open. Also, after 1030 ET, the Discretionary Stocks started to show some weakness relative to Staples. But since the Financials are still not making a lower low, we may see the market trade in a relatively narrow range.

Charles