Note Added 9:19 AM: Futures catch a bid. S&P +2. Dow +8. Nasdaq +8. Crude is pulling back off the highs from overnight. WTIC crude is under 107 with Brent at 113. Dollar/yen moves higher from a low at 101.67 overnight back up above 102 to 102.11. Banzai! The BOJ always comes to the rescue with Kuroda beating the yen with a baseball bat to allow US stocks to move higher (a weaker yen sends the dollar/yen currency pair higher and US and Japanese stocks higher while a stronger yen, like yesterday, sends the dollar/currency pair lower and US and Japanese stocks lower). Retailer EXPR is targeted for a takeout leaping over +22% so this will help pump the retail sector higher. The fix may be in today for bulls since RTH staying above 59 and moving higher will help stocks recover.
Note Added 10:24 AM: Consumer Sentiment is 81.2 under the 83 expectations and last month's 81.9. Folks are likely becoming beaten down by higher gasoline prices and a sick stagnant economy without job opportunities. Surprisingly, at the start, the RTH collapses under 58.98 ushering in the market weakness. High drama is occurring now with RTH recovering creating the recovery move in the stock market and is now fighting at the 58.97-58.99 bull-bear line. The RTH 58.98 level is more important than the broad indexes since the retail sector will dictate market direction today. Dollar/yen remains above 102 helping bulls. INTC joyousness helps bulls. Lower volatility helps bulls. Whoa. TRIN collapses to 0.57. This provides the bulls with a huge eagle feather for their caps. This low TRIN will send equities higher all day long today. Keybot the Quant remains long but is threatening to go short again but likely needs to see the SPX print under 1926 and heading lower. Price is now at 1934 well above. The SPX 30-minute chart positive divergence highlighted this morning creates the market bounce that should run for a few candlesticks. Watch RTH 58.98. RTH is printing 58.96 holding on to the bear side by a hair despite equities moving higher. If RTH stays under 58.98 it will overrule all the positive things mentioned and it will drag equities lower. If RTH moves above 58.98, the bulls will have a big par-tay today. SPX 1939 serves as overhead resistance.
Note Added 10:39 AM: RTH 58.96. The bears hold the line with RTH 58.98, for now. The drama continues. The 8 MA on the 30-minute chart is curling upwards so the bulls will try to create a positive 8/34 cross today. TRIN is 0.61 pure bull fuel.
Note Added 10:51 AM: RTH is 59.02 now confirming the market upside; see if the bulls can hold RTH 58.98, or not. Long trades are already popping the corks on the wine bottles to begin the weekend fun early. Bears better push the retail sector lower or they will have their face rubbed in the sand today. TRIN 0.66.