With the risk-off trade en vogue this morning and the S&P 500 basically stuck in a 50 point range between 1325  – 1350 we don't see any conviction in either direction for the very near term.  As such we will do lots of hand sitting in the early going today to observe and get a feel for what might get done.  Should they want to bounce stocks higher again we expect a very obvious turnaround point to happen as soon this morning.

In the medium term (2 months) we think the picture is somewhat clearer and that at the very least a correction of 5-10% should be on order.

Happy Trading



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