EARLY LOOK

Markets open higher led by oils, airlines, small caps and brokers with leading laggards being metals, retailers homies and defense.

Market internals act bullish with about 2,000 more winners than losers. HD JNJ and WMT are all lagging DJIA stocks.

The sectors/stocks that I would expect to lead a rally (SMH KLAC QQQQ GS) are not acting that well hence I don't expect much upside movement. My guess is that any significant rally in the SPX to the 12501260 area will be sold quickly and shorted by the Bears.