Pre Market TAO Fri 7-17-09

Over night Es trade range 940 - 929
Gold / crude down
Us Dollar up

reports

Housing starts 582k up

Earnings reports so far have been bullish for the markets .... but they all are showing profits by cutting (using and depleting) inventories , employees, and costs. this is ok short term but this is not a long term growth orientation.

Bac, C, Mat, Ge report b/o

If the Us Dollar can continue to rally this will be bearish for markets

Asia / Euro stks up 5 th day!

Overall the Tape looks bullish .

The charts show a key correction possibility after this huge 4 day rally but we may open flat and trend sideways today.

My plan today is to sell the high range at open up to 9450 and exit down to 9200

9:30 am et
the market is looking bullish in to open i will treat this corrective trade like a hot potato and very aggressive in profit taking
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11:25 am et............. Spy relative vol is down 15 m .....tick has been bearish all am......sectors are all trading to the median of yesterday range..... price is oscillating at pivot 9400.... so far a flat day...