Morning Report – January 31st, 2014
After a strong bounce yesterday, stock futures are trading sharply lower this morning following the European Markets on deflationary fears, and a weaker than expected German retail number.
This is a shock to the Bulls who thought they had regained their footing yesterday. Early morning futures tell us little about how the day is going to play out, but the NASDAQ is currently down 1.28% for the month of January. January has been a heavy volume month, and with the spinning top candle combined with the heavy volume, it appears that January will end as a distribution month. It will take a huge rally today to reverse the negative month, and it certainly does not look like that is going to happen today. The fourth chart below is the monthly chart which shows the spinning top candle and the heavier volume. Read full report