The indexes are in the midst of a pullback after a powerful two week move. Right now the action remains constructive and will hopefully lead to further consolidation setting up some charts for good R/R long entries and propel us through the 50 dma. There are basically two or three scenarios that I would see as bullish setups and offer easy entry points for index trades. The first would be a few days of tight conolidation that held the 750 area where volume could continue to remain high as those who were lucky enough to hit the bottom or buy the rally early on, take profits, and more investors look to put capital to work. The second would be successive days of lighthter and ligher volume fades that hold the 715 to 725 area. But with how difficult the market has been of late it will unlikely be this clear cut. For now I think patience is the key.

Commodities have been trading sideways since November building long bases. I think this is probably the best area to begin looking for pullbacks near the bottom of their bases (placing stops just below). If we are going to continue to rally after consolidation, some sector rotation will have to take place away from the financials, retail, and select tech in order to sustain the rally. I think commodities are a likely candidate to see and influx of investment as inflation will become a bigger and bigger issue down the line as the goverment continues to essentially print money in order to provide funds to banks and insurance companies.

Some of the best looking volume patterns I have seen in individual names are:

Steel
RIO - 13 1st line, 12 - load
SID - 13.2 ", 12 "
CMC - 9.5
X - 17.5
CLF - 11.5

Copper
FCX - 34 ish
PCU - 15

INFRA
SGR - 26.5
MDR - 13 ish

Coal
WLT - 20ish first line, 16 load
ANR - 17ish ", 15 "
MEE - 10 ish

Golds - might offer the best entry in the short temr as the indexes continue to pullback. These could be bought on strength through resistance levels but might offer better R/R on a dip with the overall market
GRS, AUY, JAG, VGZ

Some other good looking patterns that are set up for primarlily break outs are:
SWHC - buypoint through 5.8 on good volume
RGR - through 11
STEC - 1234 setup for tomorrow buy might offer better R/R on a dip to 7.15 with a stop under 7 should it try to fill the gap from earnings
FEED - Support at 1.8, 1234 poss. for Tues, Look for a dip aruond 2 on light volume
LZR - should explode through 9 on big volume

More to watch:
PEGA, ASGR, HWD, BCS, SUSS, SIGM

JAX