John Hughes 212-692-6391 jhughes@epiphanyresearch.com
We were unimpressed with Monday's rally attempt. Breadth was flat and volume was light. No real momentum behind it either. With Today’s higher open indicated by the futures trading above fair value, we should get another insight into the developing weakness and its impact. The pattern of higher opens and flat or lower closes, has been another developing theme as well. It isn’t the way stocks start the day, but how they finish that is more telling. If this early strength does not old or build through the session we would view that as a negative and further signs of short term distribution. If the strength does build, then we would be inclined to think the selling pressure has not taken hold in a significant way just yet.
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