A New Season is Underway

The major banks reporting earnings this morning gives a more standard feel to a new earning season now underway. At first, the likes of BAC JPM WFC did not react much. But as I write this I see Wells is up by more than 2%. 

As for stocks at-large. bulls are looking to erase the concern the market showed yesterday morning off the open, with a strong drive lower. Small caps are higher by a bit more than 1% as I write this, which should, once again, put bears in a spot where they need to make something happen sooner rather than later in order to prove their case that this type of action amounts to a churning, rolling top in lieu of another bullish consolidation. 

But the threat of rotation is still a menacing weapon for bulls, as even the steels are climbing back today after getting clubbed yesterday. Moreover, Nasdaq leaders like FB NFLX PCLN TSLA not only are failing to slow down, but may be gearing up for a new leg up.  

Headed into a three-day weekend, I am looking to see if the morning progress for bulls holds into midday, which is roughly where we have seen reversals of late. If bulls hold the line, we have some enticing long setups on watch for Members.