Wednesday Morning Update

Despite the late ramp into the close, yesterday had a "top" feel to me. After the hard push back from 1007.12, it looked to me like there was going to be a lot of profit taking. That is what is happening today, as we headed for 995 and got a quick bounce off it. Leading up is XLF, which is actually positive, leading XLV, XLY, and XLB. Bothe the Nasdaq and Russell 2000 are lagging badly. The TNX gapped up big this morning, but has since collapsed. We have 3 big treasury auctions today, so that will be something to watch. The ADP employment report came in worse than expected, factory orders better than expected, ISM services worse than expected, and crude inventories just came in lower.

I have 88 new highs, with several high volume gap ups, but many of them are showing reversals.
WFMI is by far the best looking of the charts I have seen so far. From last night's reports, we have BMC down 2%, CSTR up 6%, PARD up 6%, and WFMI up 19%. From this morning's reports, we have AFAM down 6%, CWEI down 2%, DWSN down 11%, EBIX down 5%, EXM down 8%, LINC up 10%, LL up 12%, PQ up 5%, SMP down 3%, TKLC down 8%. KGS has been rescheduled for Aug 10, and VM has no news at all.