Ahead of the open, (11-11)

Some stabilization post bloodbath will likely continue into Remembrance /Veterans day with US bond markets closed/ little eco’ data (Mich. Confidence#). Some positive developments today and possibly over weekend in respect to Italy, but it seems it may too late to reverse direction considering SP~1275 was a stop sign this trading week. It’s also possibly late b/c eyes have moved on to France, it’s yields and spread vs. Bunds. Add the high possibility stabilization in the Eurozone is usually short lived and downtrend started last week may resume next week.

Not much conviction to lay out exposure on either side (longs or shorts) between 1275- 1230/1220, expectation is for November chop trade until these levels penetrated.

• Noticeable is some negative trends circulating in the underlying market: momentum stocks stalling out and/or being shredded post EPS, R2K underperformance/ some mid –caps earnings late this week that should have had some upside up trade are being ignored. Too many times one or more of these has signalled an end to the uptrend trade.