Points to a Higher Open

3:25 pm ET - The SPX has continued to slid to near even for the day...could this be a key reversal day? FAS and UYG have given back Monday's gains and we have closed the positions in the model portfolio...we'll watch if the market holds here and bounces or falls further as the market moves into the close... 3:04 pm ET - A double top appeared on the SPX at 1:45 and broke support around 1:55...intraday price action is forming lower highs and lower lows at this time...is this the beginning of the end of the counter trend? Stay tuned and trade accordingly.... 12:53 pm ET - At the mid-point of the trading day the SPX continues to trade above the early trading range and looks it wants to continue the counter trend...that's why we get in on a break of the high of the low day (last Tuesday) and trade the short term trend until it breaks the low of the high day (?)...stay with the trend and move stops... Financials are the strong sector again today with FAS +12%, UYG +8% and XLF +5%...Utilities XLU and Industrials XLI also strong...Transportation IYT also putting in a strong show...Consumer Discretionary XLY and Tech XLK are the weakest sectors today... 11:25 am ET - SPX and ES breaking out of early morning trading range to the upside...most stocks trading up... 10:39 am ET - Early trading continues range bound to the upside...ES bounces at 761 area and returns to 767 area...holding at upper range end now... 10:10 am ET - As expected most stocks are trading to the upside since the open. The ES futures are trading in a range between 762 and 767 since the open and the break of either side will give us the next direction. There is some weakness in SOHU, FWLT, AKAM, HANA and SCHN. LZ is flat while CERN and ADS have pulled back from their highs. Looks like ES is breaking 762 as we type... BMO - Both SP +7 and Nasdaq +4 are trading higher in pre-market trading. This points to a higher open. So will this make it five up days in a row? It is hard to say this early but with some of the uncertainty regarding C, BAC, and JPM being profitable in the first two months of 2009 and Bernanke's comments on possible end to recession in 2009 it looks like futures traders want to start trading to the upside on Monday. We'll see if cash traders use this as a selling opportunity or if the do additional buying after the open. We will be watching the stocks on our At the Open on Monday list to see how they fare today. We'll be back after the open and tell you what we see... At the Open on Monday Counter Trend SPY – formed a white spinning top, potential high day in bear flag NSC – formed a black spinning top, potential bear flag SCHN – closed near Thursday’s low after breaking low of the high day on Thursday Up Trend HANS – formed hanging man above horizontal resistance CF – white spinning top did not confirm Thursday’s hanging man/bearish harami just above horizontal resistance breakout CERN – formed dark cloud cover inside AKAM – black spinning top Sideways Trend OSIP – broke through 30 and 50 DMA RE – formed white hanging man at 20 and 30 DMA FWLT – gapped up and formed black shooting star just above 30 DMA SOHU – formed bearish harami for the second straight day at horizontal resistance SYNA – formed black spinning top above 30 DMA and inside day Down Trend ISRG – formed a hanging man LZ – formed a hanging man after 3 White Soldiers near its 50% Fib retracement level ADS – formed a dark cloud coverBA – formed a black spinning top in bear flag at 20 DMA resistance