Good morning traders.  Joe P is out of the office for a few weeks so I will be providing the morning note in his absence.

This morning we see the SPYS are consolidating under 123, which has been a key resistance level for the past two days. As a result, we expect to see a nice trend day today on the upside. Lately, we have seen that the real strength has been in small and mid caps (IWM) which has been trending strongly for the last five days.

Today, commodities, more specifically basic materials (XLB) and energy (XLF), should be heavily in play today, so gold, copper and silver stocks should beon the radar today. Also, look for a potential rally in some of the deeply oversold financials today, which has overall been a weaker sector that has been showing relative strength the last two days. The bottom line is to remember to be flexible with your bias today, but realize that the market is set up for a trend day.  be careful of fading in general today.

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SPY

124

123.70

123