Wednesday Morning Update

It appears that the overdue pullback has begun, and so far it looks like it might be a big one. We had durable good orders this morning, and while it was nothing to write home about, it wasn't apocalyptic, either, and new home sales numbers weren't bad. However, the market has been ignoring the economic recovery prospects, as anyone who still believes the economy is really recovering, especially housing, is on dope. It;s about the Fed, and right now it appears that there may be doubts about how effective QE 2 will be. Not that it matters, the market will tell us what we need to know.  The leading sector is XLF, followed closely by XLK. Lagging are the sectors that have been leading lately, XLB and XLE. Like yesterday, the Nasdaq is leading, the Russell 2000 lagging. Oil and gold are both taking pretty good hits, but *gasp* treasury yields are up - up big, in fact. What's wrong with this picture.

I have 96 new highs so far, with breakouts in EDN, SIMG, TEO, NTL, LOJN, CML, PZE, IRS, BMA, NTGR, MRCY, and FFIV.  Reporting last night were BWLD down 5%, RFMD up 10%, HL down 2.5%, and SKT up 1.5%. Reporting this morning are EXAS down 3%, CHT down 0.4%, and RDWR down 1.2%
Also scheduled this morning were AKAM, ALGT, and CAVM, which will report after the close now, and TNDM, which is now reporting in November.