New Home Sales For Feb. Very Weak

The market is lower in early trading, pulling back for a second day after running into overhead resistance on Friday.

The new home sales report for February was very weak at a rate of 250,000, which is close to a record low. The housing market has been very slow to bounce back, and I think it likely won't see anything sustainable until we get through more of these foreclosures that were halted recently and put on hold.

In corporate news, Jabil Circuit (JBL) reported strong results and its stock is higher, while CREE cuts its guidance and is down sharply.

Asian markets were mostly lower overnight, with Japan still struggling to restore power at the damaged nuclear facilities.

Oil and gold are rallying again, with oil prices above $105.50 and gold prices back to $1441. Silver also hit new 30-year highs this morning.

The 10-year yield is lower at 3.28%; and the VIX is 2.2% higher to 20.66.

Trading comment: The S&P is moving lower after being rebuffed at its overhead 50-day average on Monday. This is the normal course of corrections, which is why I said to exercise patience. Hopefully we will see the sentiment indicators rise in bearishness again, as that would set up another good buying opportunity. Many former growth leaders, including cloud stocks and networking stocks, look to have lost their leadership position in the market. So when this correction runs its course, it might be time to look for some new names to lead the next leg of this market. Stay tuned.