OPENING LOOK

The markets are higher this morning with SPY up .6%, QQQQ +.75% and of course the big winner, yes, IWM +1.4%. I guess the IWM has been underperforming as the markets were going down so it is time for it to outperform as it goes up. My theory is that SPY will outperform if the markets go lower and will underperform if the markets go higher.

The sectors outperforming today are the Small Caps, Metals, Oils and Internets. The market internals show about 3k more winners than losers and if you are nervous that the markets will give up these gains, focus on the recent tells, internals, QQQQ and SMH. Those will give up the gains first.