TECHNICALS --SPX

The markets continue to trade marginally lower with the internals a hair bearish with 250 more decliners than advancers. I am watching the 10 year Bond closely as the yield has gone back to 5.1% on the heels of the lower inflation numbers. The only other green on my screens are the SIL /GLD metal ETF's, drugs and the larger integrated oils with the service sector slightly red.

One clue of whether this market will break its bull trend is to watch if the percentage of SPX stocks trading above their 50 day SMA begins to break. As of yesterday, the recent lows have held at prior SPX lows (beginning of February and the middle of April). Just another tool in the box.