SP Futures Hourly Chart at 3:30

The Nasdaq is in a similar pattern.

Note the long end of the Treasuries was down again as money came out looking for βeta. Quite often it comes out looking for risk and is consumed on these technical bounces. The dollar eased as well, and the yen is moving. We like our thought that the Pound is heading for parity with the euro, and may be with the dollar before Buck takes a dive.

We were net long for the day, but are flattening out and taking some profits, including a big Long Bond short, into the close, leaving a slight edge on to the short side of financials and long tech.

Dollar down gold up but nothing of substance. Watch to see if any of these moves extend. We're believers in the January full month indicator so obviously the action this week is important.

We may break out, so be aware of the resistance. We could see a short squeeze if we do.

AAPL and EBAY after the close. They may give us a better read on tech, now that IBM has become an accounting black box.

The word for the day is: FROSTY. Let the market show us the way short term.