Thursday Morning Update

The first real drop in the market since Monday of last week, this one is actually lasting longer than 15 minutes. 1018 is support, and it was broken in a possible head fake move. We are getting a bounce off 1016, but it is not very sharp, so maybe the bears didn't take the bait this time. The bad news this morning? Initial claims, better than last week but worse than expected. The propaganda machine will push the fact that the number of people on unemploymnet is dropping, ignoring the fact that it is dropping because benefits are running out. XLE is taking a serious pounding, XLB and XLK a distant second. Relative strength is in XLI, XLP, XLU. As usual, the Nasdaq and Russell 2000 are getting pounded relative to the SPX.

There are "only" 35 new highs this morning, with poteential breakouts in IMMU, RY, LONG, and JAS. Going through this mornings earnings reports, there isn't much of any note.