SHORT TERM: stocks open lower to start the week.

Overnight the Asian markets were mostly lower, with only India's BSE displaying again to all time new highs. China's SSEC declined again as its correction continues. Europe came in slightly higher 0.10%, and our stock index futures traded a bit to the downside going into the open. At the open stocks traded lower, recovered a bit nearing 10:00, and then turned lower still. The anticipated short term pullback appears to be underway. Bonds are up 1/4 point, Crude is 55 cents higher, Gold also higher up $4.00, but the Euro is down. During the first few minutes of trading the R2K made a new high, but that was about it. On the economic front, there is not much going on this week. At 10:00, ISM reported that the non-manufacturing sector of the economy, its major part, continued to display strength, as it rose for the 46 month in a row. The Jan. reading was 59.0% verses 56.7% in Dec 06, its highest reading since last May. Short term the indices are approaching an oversold RSI level on the hourly charts, as illustrated by the SPX15min chart below. As soon as this stabilized, the market should rally again to higher highs. Best to your trading.

MEDIUM TERM: bullish

LONG TERM: bullish.