The Opening Look for 6/21/12

Yesterday Big Bad Ben addressed the masses and the lead up for the most part had been that anything good has been priced in, and with that in mind price action was expected either be negative or very negative. As usual the market did what it does best; make the most amount of participants wrong. Selloffs were attempted multiple times and they were met with a drying up of sellers, rallies back had no oomph either. . Anyone buying strength or selling weakness just got whipped around all day long, classic digestion.... and very good for the bull case. VIX has now dropped significantly below 20 and looks to have put in a top at its recent high of 27.73 further boosting the bullish case. While the move above 20 to almost 28 was within the norms of the past year, it did look to have more pop than was achieved. This morning, unched is the word as we are flopping around closing level. The 8:30 news print of jobless claims brought yawns, and yawns are contagious. Look for the digestion to continue with the likelihood of an inside day. If yesterdays Tuesdays highs are taken out and volume isn't expanding, I'd be a watcher rather than a player, new lows, without a significant news event probably will be retraced also. Sell some premium with some downside protection and hit the beach!