Few Positives To Offer

Good morning. Weak retail sales, news that borrowing from the Fed's discount window soared in recent days, and more credit/mortgage problems overseas have set us up for a challenging Friday. Given the gains we've seen this week, the bulls are in a difficult position as overhead resistance looms large and the news out today have few positives to offer.

Premarket gainers: CSUN, CRXL, NGSX, GGBM, RICK, RIMM, MPEL, SLAB, CWTR, HANS, URRE, SCHW, TWB, and LIHR.

Premarket losers: LSCC, BRLC, SHPGY, JASO, IMCL, AAUK, NDAQ, INTC, GOLD, DELL, TNH, GRMN, LEAP, EBAY, NVDA, DRYS, and AAPL.

The final two economic reports of the week - business inventories and consumer sentiment - will be released at 10:AM and, while they may help, profit-taking and some short-selling looks like the name of the game. Few people trust the gains we've seen this week, especially in light of this morning's headlines. In my view, it would be a good thing not to enter the Fed in a completely overbought state and if we rallied today and again on Monday, that's exactly what would happen.

Be smart out there today!