GOOD STUFF

Some facts for the morning:

SPX futures are trading up about 5 as I type and that would put the SPY right at daily resistance of 124- note the pivot point today is 123, so a filling of the gap (or close) may be a good time to get long-

The VIX is back down to 21.46 after reaching a multi year high on Tuesday, is now stretched 17% above its 10 day SMA.

Under 20% of the SPX components are trading under their 50 day SMA's which is the approximate level of previous market bottoms.

Charles from The Kirk Report has dipped in his toe for an index trade and he has been great avoiding the rush.

Risk to reward on a swing index ETF trade may be staring at us as we now have a good stop out point- (Tuesday's lows), and a good target area of the 200 day SMA (SPY 126). DIA may even be a better vehicle as the real big guys may be the place for the first significant bounce.


Paul Hickey at Ticker Sense notes the following from David Rosenberg at ML:

1) The markets have gone about 820 sessions without a 10% correction so we have been overdue for a pullback.

2) The forward P/E has compressed to a mere 14.1x, back to the area where it was in Oct 2005, where the market bottomed.

3) Earnings remain strong and inflation fears seem to be subsiding as commodities pullback.