Midday update

Cumulative ticks steadily trending lower. The open was compelling given that buyers were unable to push the market higher (because of a lack of "paper" buyers at the open) with both the TF and the NQ's raising red flags by showing relative weakness early. Interesting to see if we do get the Turnaround Tuesday tomorrow which on a seasonal statistical standpoint has been very bullish in the past. A long at the afternoon lows or towards the end of the day or may be worth a play and holding overnight. I think the market at this juncture doesn't really like the fact that we are going to get higher inflation down the track and thus higher interest rates especially with oil at these levels. No one really wants to hold government debt right now and that is not helping. All of which is pushing yields higher. It's a real battle to see what happens from here. We could be seeing the first signs of a drawn out rounded top in equity markets but it would be quite premature to doubt the bulls just yet.