Monday, November 16, 2009

Morning Briefing for November 16th: Looking Firm

9:29 AM CT - I added the top chart to show the impressive breakout move during the first hour of trading, as intermarket themes got in gear and buyers remained aggressive throughout the hour. I'm watching the distribution of TICK and Delta to see if that continues, and if that might support an upside trend day.

Here's how the ES futures market has been shaping up going into the open; shout out to Market Delta for the chart. Note that, following the retail sales numbers, we've moved back into the overnight range and are now trading near the day's volume-weighted average price (VWAP) at 1099.25. We continue to see U.S. dollar weakness and commodity strength, supporting stock market strength. Per the recent post, I will be watching market breadth closely early today to see if the market firmness can carry over to small caps and lagging sectors, especially financial issues (which are up over a percent in premarket trade).