Not much to say this morning. The CBI dropped to “2” yesterday, officially putting that indicator back into neural territory. I’ll post a graph of recent CBI activity in the next couple of days.

I continue to believe risk/reward favors the bullish case at this point. The extreme levels of fear and bearishness I’ve noted lately in such things as put/call ratios and Investors Intelligence survey lend support to the idea of a multi-week rally. My explosion off bottoms study remains in effect and also has a strong bullish tilt. Friday would be the first day that an Investors Business Daily Follow Through Day is eligible to occur so I’ll be sure to carefully monitor price and volume action in the indices.

Futures are looking to gap lower this morning. The CPI report will certainly have an effect on the tone of the opening. If futures worsen following the report then my intraday focus will once again be looking for long entries.