Big Blue Needs Better Help

Despite an overnight rally led by Dow futures largely on the back of IBM (or "Big Blue," as it is known) earnings, equities are experiencing a notable dip as I write this. In fact, the small caps in the IWM and the S&P 500 Index's ETF, SPY, flipping back to red. 

Simply put, bulls will need to show they have sufficient conviction to step back into this market to stabilize the inevitable dip we figured would occur in the wake of the post-Christmas relief rally at-large.

Although individual standouts in healthcare, biotech, and software are impressive, including FEYE's pop today, not to mention some fast-casual studs like CMG, the reality is that the individual relative strength names will still likely run into a roadblock if the major index charts soon lose their respective 50-day simple moving averages, again. 

Separately, it is interesting to see the gold miners outperform the gold metal itself this morning. After dipping back below the ETF's 200-day moving average, the GDXJ (ETF for junior miners) is trying to turn back higher. If it reclaims it, the yellow line on the GDXJ daily chart, below, I would definitely be looking to add back some mining exposure to play for potential new leg higher.