QUICK THOUGHTS
I continue to believe that the markets are in the process of topping here. This is a part of the process. Not happy about getting caught in this type of gap move...but if you have held positions overnight in this market, getting caught in surprise overnight gaps is inevitable as it has become how the market puts together its gains.
I don't talk about the Dow much as it has been in no man's land relative to the other averages. However, on the open it will be gapping into heavy overhead resistance around 12,400.
An attempt to break out of the prevailing pattern for the Nasdaq should be greeted with suspicion, as the sentiment picture doesn't support taking out such a powerful pattern.
The only position I am looking to add to is my SCO (short crude oil) long. I'll see where it is later in the day.
