SHORT TERM: stocks open higher, but then turn mixed.

Overnight the Asian markets were mostly higher, with the only exception India's BSE. Europe came in higher as well, and our stock index futures were slightly higher entering the open. At 9:30, stocks rallied a bit as the SPX/NYA made marginal new highs. The rally lasted until about 9:45 when techs turned lower gain, pulling the market to unchanged by 10:15. The only economic event of the day, is a 1:30 speech by FED chair Bernanke at Chamber of Commerce in Nebraska. Bonds are flat, Crude is 70 cents higher, Gold is $1.00 higher and the Euro is up as well. Short term momentum, as measured by the hourly charts, continues to remain in slightly overbought territory for the cyclicals, but obviously not for the techs. Still mixed signals. Medium term, most of the indices remain in uptrends: SPX/DOW/NYA/TRAN/NDX/NAZ/R2K, despite the weakness in the tech sector for the past few weeks. Still expecting this market to move higher in February.

MEDIUM TERM: bullish

LONG TERM: bullish.