Tuesday Morning Update

If you set lines at the 10 day high and low, you have a range of about 34 points, meaning the middle is 17 points from the bottom, a 50% retracement. In this case it is a retracement of a down move, which is a good indication that we are probably entering a down trend here. "Down trend" could mean we are hav ing a 1-2% pullback, or it could mean a collapse of epic proportions, although with the current lack of distribution days (IBD says there are 3 on the SPX, I'll be damned if I see them), and epic collpase is highly unlikely. The leading sectors this morning are XLV and XLK, lagging are XLE and XLI. The Nasdaq is leading slightly, the Russell 2000 is lagging. I have oil and gold up, and treasury yields are schizophrenic - the 10 year down, the 30 year up.

I have 100 new highs so far, with breakouts in FUEL, MAT, TGI, CNL,  and GRA. I have reports from BIRT, down 3.5%, and MTH, down 10%.