It was disturbing to see the big double-digit run-up in ES and NQ this morning, but that’s all withered away to nothing. At this point, the bulls are desperately fighting to artificially prop prices above 2626 on the ES. That’s the line in the sand. If it fails, they’ll probably have to interrupt Larry Kudlow’s cocaine-snorting and get him on the tee-vee again.
It’s encouraging to see some individual picks start to re-weaken. One standout this morning is Capital One, down about 5% at the moment. Given the long-term analog for financials, I probably consider the ilk of COF to be among my favorite shorts.