Tonights Newsletter Includes:

1. General Market Analysis

2. Indicators (other things to watch)

3. Trade Ideas

Market Summary:

A round of mixed earnings reports and economic data pressured stocks Tuesday, but equities managed to close off session lows. The Nasdaq fell 0.5%, cutting its intraday loss in half. Meanwhile the S&P 500 lost 0.5%, while the Dow and NYSE composite gave up 0.4% each. Volume was light today - a good sign when the market rests.

After yesterday's rally and ending the day overbought and at the highs, it was not too surprising to see the market pullback some today. From monday's SPX 1127 high to today's low at SPX 1117 is only 10 points, and within the range of the typical 10-15 point pullbacks during good rallies.

The ADP employment survey and the ISM services index will also be out Wednesday morning. 

Yesterday the small caps (Russell 2000) and Nasdaq lagged. Today was more of the same. While the Dow and S&P held their lows from yesterday, the Nas and Russell took out their lows. It's not a huge concern just yet (I try not to over-analyze the little day-to-day noise), but it will be concern if it continues.

Those bearish rising wedges are still in place, so if the small caps can't improve, and the market can't follow through on yesterday's solid up day (decisively break out of the wedges), one must be prepared for a reversal.  Please keep this in mind over the coming days when trading if any longs trigger.

Three Items to Watch for Market Clues:

1. VIX

2. Dollar

3. Copper

Trade Ideas: