“You have to have confidence in your ability, and then be tough enough to follow through.” – Rosalynn Carter

More cracks showing or just air-pockets around sideways actions at highs? That’s the question. Regular readers know where we stand on this and what we believe this means for the VIX > upside pain as velocity of move is clearly to the upside not the downside.

As discussed on Twitter yesterday, ‘Tis but a scratch! Not even a flesh wound… but things could be getting interesting, especially on NDX. Don’t forget to keep an eye out on individual names for early signs of traction: Amazon, Nvidia and so on…

In terms of sectors we would like to continue to stress that we are focusing on IYT and XLF for clues. Charts are on the Twitter stream and we’ll continue to try our best to keep posting ideas and real-time updates throughout the day.

We are still looking for DAX to fill that gap into the 12040s and will keep a close eye on the the psychological 12000 level from a day/week/month close basis.

Fingers crossed for an interesting day and we’ll look to go through a detailed chart run-down in the Sunday outlook video.

As always there is no substitute for real-time/live action; if you are interested in attending a daily morning call into NY with a more detailed live discussion on all the charts and ideas we highlight/review in the outlook video and here on the blog, you should check out our Daily Webinar Group.