Despite yesterday’s wild range, and strong downside action, the $SPY is set to gap up this morning. While most remain hesitant to pick a market direction, the Financial Sector appears to be doing a good portion of the leg work early today. $BAC $GS and $C have all had tough goes of it in recent sessions, however when compared to the action across they board they have held up rather well. If we are able to hold a bid today, which we haven’t been able to really do since November, look towards the Financials to exaggerate the market’s strength.
High Flyers remain a head scratcher, they have shown signs of life but are clearly experiencing money flowing away from the sector. Instead, it appears that much of the money flow is finding its way towards the likes of $TWTR $FB and $LNKD. Although the Social Media sector is clearly hot, don’t discount the High Flyers too much. They could provide some strong squeezes intraday.
Overall, tred lightly today. We have Yellen speaking at 2 PM, along side of the FOMC Minutes, and while she will undoubtedly remain “dovish” people still read into what is said. Meaning, people trade off of the FOMC. Staying light and fast will likely prove to be the way to go again today, although if we see some elongated strength things could really heat up.
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