Game Changer Day Needed Now……..Interday test of 803 would be Good..++

Yesterday the market had kind of a text book light profit taking kind of day.  It was not a big deal because there were not many traders with profits to take.  Keep in mind that the sellers continue to dominate the activity as they have since last November.  So a game changer kind of day is still needed before this market can start running on the upside.  That would require a close above Mondays high on the S&P and a close below 890 on gold. 

And CNBC star Rick Santelli seems to be having a meltdown this morning…another good sign for something big to occur.

EMA ETF Fund NAV was 972 at the close yesterday.

7:41 AM CDT

UPDATE AT 12:50 PM CDT     An interday downside test of 803.20 on the S&P would be good.  Sellers still control the market, the early rally didn’t hold and it would be good to see what they can do with 803.  If the market does not hold and penetrates 794, we will sell out half our positions. If it does hold we will add to our leverage on a close over 823.

++ Further Update at 1:14 PM  Further analysis points to a tempering of our sell comment.  It is easy to sell here, and it would be a good year if we did, but we are going to take a more measured course at the moment. We will keep you informed if we decide to do something.