Pre-Market Brief - overnight recovery

Good morning. The bears are going to be real annoyed already and the market hasn't even opened yet. Early overnight losses of dow-125 have now swung to +5pts or so. I've no idea why this is the case, the trend looks slowly upward, so it looks like it was based on no news.


Sp'60min

Summary

From a cycle perspective, both the 15/60min cycles are VERY oversold (see blue bar histogram at base of chart). We could easily see 2-4 hours of upside to start this week, before a fail around the 10MA - which by the end of today will be around 1280/82.

So, a brief break - as high as 1295/1300 is viable today. Depending on the action, I will probably look to short any early ramp. All the bigger cycles suggest further losses, with a near term target in the 1225 area.

As usual, more across the day.