The Consolidation After the Adrenaline Rush.....

Pre-market futures are down more than I expected, but not enough to surprise me anymore in this market. Once again I'm glad I locked and walked on a nice profit intra-day (yesterday) and didn't hold overnight. There isn't any specific catalyst to the morning, but MS is down a bit after posting earnings this morning - which may be a consolidation of yesterday more than anything. In fact, the whole market looks like it wants to lay down for a bit after the rock concert yesterday.

Here is a chart of the SPY:
(click on image to enlarge)

I don't want to buy calls if the SPY goes much below 90.00, so we'll see if we get a fourth gap down and pop in the past two weeks. For now, I am going to take things cautiously this morning. I was looking to go in just a tiny bit heavier this morning, but with the futures down this much, I'll treat today as I have much of the past couple of months. Still, if the SPX can overcome the gap, it has a chance to rally into the 9,400 - 9,500 area. As always, we shall see.....

I posted a watchlist yesterday, and some notes on my schedule this week.

5:00 pm MT: Market Wrap: Today was a pure consolidation day. It looks a little Harami Cross-ish on many charts, which I don't like. However, using the SPY as a market proxy, as long as SPY holds above the mid point of yesterday's long day and also above today's low - both in the 90.00 area - then the market has a chance for another leg up in the current upswing. So I'm cautious on calls on a drop much below the 89.75 - 90.00 area, and I'm bullish on calls on a move above 92.50 that would open the door for a move to the 95.00 area.

Here is a chart of SPY:
(click on image to enlarge)

Here is a list of strong Bullish Movers in addition to the Watchlist from yesterday (some of these stocks are from yesterday's list). Also, yesterday's list is still in play for me as well.

Tech/Alternative Energy: FSLR, SPWRA

Materials/Construction:

Energy:

Cyclicals: WHR

Retail: DLTR

Financials: BEN