The Market is Crashing Up...Futures Point to a Significantly Higher Open after EU Bailout...

9:53 am EDT - there is a small pull back from the market high in the first 20 minutes...watch to see if price holds above the open...if it does watch for the next support bounce and the possiblility for the market to make a higher high and VIX to fall below 25...


BMO – ES +45.25 and NQ +75.00 futures are higher in pre-market trading pointing to a significantly higher open. The EU came with a huge bailout ...in reality no surprise here, It was a matter of time...Remember Dubai or the U.S. banking system or GM?

Someone once said “markets don't crash up.” When that has been said, I have retorted, “oh they do when they gap up.” This morning the market is crashing up. And that is fitting after Thursday's unexplainable 5 minute meltdown and subsequent intraday rally.

In pre-market trading AAPL is +11.61, AMZN +4.02, GOOG +18.72, BIDU+24.55, INTC is up 87 cents, BAC is up 98 cents and GS +5.57.

The key to watch for today regarding the stickability of this pre-market rally is the VIX falling below 25, which is last Wednesday's high.  If it does, this is the momentum shift I wrote about last week that we would be looking for to shift focus back on the short term up trend.

Pre-market trading is being led by XLI Industrials, XLB Materials, XLF Financials, XLK Technology as all sectors are higher. XLU and XLV are lagging.

Trading Down: FAZ
Trading Up: PCLN, MA, DECK, GS, UYG, POT, NFLX, FLS, CLF, WLT, CRM, GES, X, CREE, V, URE, FAS, V, URE, CAT, FCX, WHR, GMCR, ICE, BUCY, AGU, BA, USD, SPG, DE, PNC, ZION, DE, PNC, AMX CHL, SNDK, UNP, HLF, MCD, CAM, MOS, LVS, TSL, SWN, WFMI, BKC, GR, DOW, WFC, STI, ACN, WMT, BAC, UAUA, USO, IPI, MHS, AMD, OSTK, MYGN

At the Open on Monday

SPY –
QQQQ –
FAS –
TLT -
FLS –
NTRI -
OSTK -
EXBD -
MA -
ILMN –
AKAM –
SNDK –
NFLX –
AAPL –
SHLD –
WHR –
ZION –
DHR –
DECK –
X –
CLF –
BA –
DOW –
BBY –
MA -
V –
PCLN –
CAT –
PCP –
CREE –
AMD –
UAUA – merger announced
UNP –
DE –
FCX –
GMCR –