The major averages closed off their lows on the day and our optimistic eyeballs seem to have noticed some troops picking up some bargains in the final minutes. Oil lead all day and while select technology saw some selling, the damage wasn't severe and the technicals remain sound. Breadth finished quite poor but improved into the close.

All and all were pleased with today's action and feel this is materializing into a perfect set up that may snap us higher. Our bullish e-mail has dissipated and all of a sudden the macro arguments predicting the end of the consumer due to oil, interest rates and a cracking housing market, seem to be back in vogue. This is the precise psychology needed to create the wall of worry that will allow stocks to start moving higher again.

We put some capital to work today but are remaining flexible in the event Mr. Market could care less about our thoughts and decides to dance to another tune. Despite our optimistic undertones, protecting capital is priority #1 and we have no problem taking action very quickly should the overall technical picture change.

For now we are remaining patient allowing our charts to set up and our watch list grow. Despite a shortened week, the action may heat up quickly and it will be very important to be prepared.

Have a good evening.

RevShark