Half hearted NAZZ Bulls

The market is doing a nice job shrugging off the disappointing action in CSCO and DIS. Semis and Small Caps look strong and the breadth is about 2-1 positive on the NAZZ. The Dow is the most impressive with the NYSE showing almost 4-1 positive breadth. AIG, AXP, HD are standouts on the Dow.

The Oil inventory numbers were released at 10:30am and showed a larger build in Crude and Distillates than expected. This report is coming at a time when Oil is hitting near our $65 price target. This might be just the trick to further pressure the commodity and fuel a little upside action to the stock market.

Our concern is that the mojo in the NAZZ feels M.I.A. despite the strong Small Cap performance. We don't like to see the Dow lead the NAZZ the way it has been doing recently. The risks for a sudden and sharp reversal to the downside on the NAZZ are increasing. The NAZZ Bulls have a half hearted party going on right now. Our advice to them is WATCH OUT DISTRACTED BULLS, D'EM BEARS ARE STILL HERE!

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