Pre-Market:

Futures currently positive at 8:13 AM, but today looks bearish to me. I’m particularly concerned about what looks like a topping process in the $SPX (See the chart below):

I could see as a possibility a pullback in the SPX to the 20 day moving or 50 day moving average range (the blue and red trend lines above).

My bearish engulfing to bullish engulfing pattern scan from yesterday’s close is strongly bearish, reading 25 bullish engulfing to 119 bearish engulfing candles for a .21 ratio. My Chart Pattern Indicator is also strongly bearish, showing a .34 bearish reading. Also important in the CPI is the large number (2,217) of patterns in consolidation awaiting a breakout. This could portend a strong reaction in the market, but it also could not develop — not really sure.  Further bear signals are evident in both the NYSE and NASDAQ McClellan Oscillators, which have re-trekked the zero line crossover.

Of course, major news and other events can override and take charge of the performance of the major indices. What needs to be examined is what is going on in the broader marketplace, and not the major indices, which can be manipulated  –

Today we have import and export prices at approximately 8:30 AM, and consumer sentiment at approximately 10 AM; today President Obama is visiting one of our major international financiers, Japan, as we have wrapped up our $40 bbn in Treasury Auctions this week.

It is possible we could start an up open and then tail off after 10 AM today – again, I can’t predict.  At any rate, I am not adding to my portfolio, but I’m looking to scour for some pullback opportunities — I have a limit buy order in for BEST at $1.60 to try to snag a bargain.

I’ll also review this morning the status of the emerging markets, which I believe are holding up somewhat better than the US market at the moment.

Good luck today.