Still very difficult to find much fault with Equities, as early morning selloffs held where they needed to, just above 1990 and have promptly rebounded back to near session highs with 30 minutes remaining as have Treasury yields, with TNX back up to over 1.97%. Energy has rallied well off its lows, while Utilities and Staples continue to show strength, showing some of the defensive tendencies of this market of late. Meanwhile Small caps are underperforming dramatically, with the Russell 2k down nearly 1.5%, which along with negative breadth of about 4/1 negative, is a mild negative. However, Technology's rally is helping XLK reach the highest levels of the year, and given its representation in the SPX, is constructive. Overall, The area near 2008 for S&P has importance on the upside in the near-term as does 1996 down to 1990 on the downside- See the charts below for S&P and notice the bullish structure thus far, despite the negatives.