Technical Picture - Minor Gains

Opening spike down in bellwether AAPL set the tone for early trade. As we said last night, the weak close, left the door open for further downticks.

As you can see from the chart above, we shorted the break of closing lows and covered half at gap support. Price continued lower, almost reaching the second target which was a half gap fill.

Despite, notching minor new highs intraday, the markets could do further backing and filling. Watch the trendline off of today's lows to see if it holds as support.

Some large cap tech stock charts are still very unclear. AAPL's intraday 15 min. chart (below), for example, looks like the flash crash, so we need to take a cautious approach until all the backing and filling is done. Because if AAPL decides to go lower, it can affect the entire market.

We also need to see some more sector rotation. Now that semis are finally catching up, we need financials to kick in.