In my short term trading I usually take Monday mornings slow and allow themes and trends to develop. The down open this morning might test last weeks low in the ES of 2889.50. I will be watching the IWM to see how it acts today and this week as well as of the tells to get a sense for direction. What I do know is that the VIX has been decimated to get down to just above 11. I am thinking that bounces this week and volatility increases.
TELLS
IWM – last weeks low if 154.66. Lets see if it tests that and how it reacts.
CL and XLE – crude al new year highs. Lets see if the XLE can test 68.16 area on the upside. Downside support is 67.02.
XLF – needs to hold 26.9 to keep its higher level strength.
SMH – 115.87 there is a downside gap which would need to hold. Above that 116.89 is support.
XLK – 76.84 IS good. area of support. It has been a monster.
IBB- extremely weak along with healthcare.
GOOD LUCK!
BalsamTrades 