OPENING THOUGHTS

Futures markets are pointing to a higher open this morning on the heels of lower crude, a tightening of the political races, an oversold market or just maybe, folks want to buy stocks.

John Carter, the author of the fine book "Mastering The Trade" is looking for the DJIA to pullback to the 50 day SMA and then higher highs. I suspect lots of traders are looking for that kind of pullback but I don't think the markets are going to satisfy all those folks. Either much lower or we never get that low. For now, I am in the "we are gonna rally" camp.

The VIX refuses to budge from the 11 area and trades close to its 10 day SMA while the 2 day RSI on the DJIA is at 1. The DJIA has been pretty weak during the most recent selloff (6 down days in a row) so maybe its time for it to outperform for a few days.