PRE OPEN CHECK

Futures markets are trading lower this AM on the heels of the lousy durable goods numbers and CNBC will have to wait at least a little while before it breaks out the 11752 (all time high) hats. Before the durable goods numbers, futures were of course higher. Yes, the guy at left one of the worst as he says this AM that market might bust through record by noon. Of course a few months ago he got bearish and told folks to sell. Thanks Art- nice going

As mentioned yesterday, market internals have been lagging the price action of the major indexes as SPX and DIA have acted great while RUT and SMH haven't acted nearly as well. In addition, yesterday, a day where the major indexes were at/near five year highs, there were about 250 new 52 week highs on the NYSE and NAZ and about 70 new lows. Hardly the numbers one would expect in light of the major index action. So, what is the lousy action under the indexes telling us? Well one thing for sure, ROTATION, as we have rotated out of oils which made new highs months ago to stocks like AXP AZO GS MCD PBG DRIV AKAM etc which are making the highs now. Another thing, if you check your mutual funds, you are probably beginning to lag the indexes as the typical stock isn't acting as well as SPY or DIA. Same thing happened in 1999/2000 and the ending wasn't so happy.