Wednesday Morning Update

1036'ish is a spot we've hit twice now without getting through, so I'll call that the new resistance. 1018 is the previous breakout point, so that will be support. That puts dead center at 1029, a level I suspect we are going to dance around today. The "leading" sector is XLY, leading in quotes because it is barely ahead of the rest of the pack. XLI is trailing, and as I write the rest of the sectors are in a bunch right above positive on the day. Credit for the early reversal has been given to the new homes sales report this morning (better than expected) and durable goods (helped by "cash for clunkers"). Crude oil and gold are both in retreat, meaning the dollar is up.

There are 66 new highs so far, with breakouts in DLTR and TA that are worth a look. Once again, nothing on either watchlist is scheduled to report today, however, among the stocks reporting this morning was one we have been watchng for quite a while, KIRK, up 19%.