Last wek's Ponzo forecast of the SPY showed the way in spite of the historical data that suggested the week would be weak. This week may be another story and we are seeing some disintegration of the VDI + and - skew, especially on SPY. Technically, the markets modestly overbought,,,with a few sector exceptions. We still need China (FXI) pick up more positive volume momentum if we are to see a sustainable recovery, and that's an iffy proposition right now. Despite intraday contractions the 20 year Treasuries (TLT) are maintaining stability (again as forecast by Ponzo) and its difficult to see what might cause a breakdown at these levels.