OH MY...WE'RE CORRECTING!

Its a pretty simple proposition here. We're down 8 points from Monday morning when we crossed 336...straight down in fact since then. We're sitting at 328 and high change before the open this morning.And we should head lower today right into the supporting moving averages that i like to use...34..55..89..144 etc.

On the daily chart its pretty clear. Relative strength has broken down. MACD is in sell mode. So this will be the first time since the end of 2006 that we will visit those moving averages. Note that down bar in the middle of March is a data error.

The weekly chart however still has not topped out yet so until that one flips to a sell i am inclined to believe this is an overdue sharp correction that may work to give us some much deserved bargains. Speaking of which Magellan Midstream pulled back sharply yesterday after opening at 49.75...it proceeded to drop nearly 3 points by the close. This one has a habit of dropping into its moving average support zones which can provide bargains although they don't seem to last. This is an MLP that has increased its distribution 24 quarters (6 years) in a row.

Willams Partners (WPZ) actually closed up 70 cents yesterday and has been in a sideways consolidation for the last few weeks...this one my be poised to be among the next round of leaders. I am watching carefully....any drop and i may be there waiting.

Okay so the morning begins with the energy complex higher...stock futures are basically unchanged. No corporate headlines this morning and no upgrades or downgrades so far. Trans Montaigne (TLP) is doing a stock offering today but this news has been out for days and so far there has been very little impact on prices. Martin Midstream (MMLP) did a 1 million share offering this week that did nothing to move its price.

Terra Nitrogen (TNH) bounced up 5 points yesterday and we'll look for some followthrough this morning.