Futures getting a boost this morning. Financials floating up, JPM earnings were okay as projected, JPM setting up for a short probably in the 48-49 area.
Volatility finished lower yesterday favoring the market bulls. As long as the VIX stays under 17.9, now in the low 17's, the bulls are favored. The move down in the markets yesterday was on elevated volume as usual so this trend of up on vapor volume, down on stronger volume continues.
Retail sales were in line with estimates, the higher gasoline price and supply shortages due to Japan not yet reflected in the numbers.
Thus, today may be a whipsaw from yesterday taking markets back up. Watch 1322 on the SPX, if that is hit after the open then the bulls will be in control again, and they will probably run it back up to fill that tiny gap at 1340 that remains unfilled. SPX closed at 1314.16 yesterday under the 50 day MA at 1314.76 but today's futures want to nullify that ever-so-slight bearishness.
Lots of excitement ahead with business inventories at 10 AM EST, oil inventories 10:30 AM, 10-year note auction at 1 PM, President Obama talks about 1:30 PM and the Beige Book at 2 PM. And considering OPEX, the remainder of this week should be very dramatic. Utilities, financials, copper, semi's and volatility continue to play pivotal roles and they provide a road map for overall broad market direction. Traders must monitor these sectors continuously to properly gauge the markets.
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