Critical Trading Day Ahead

Microsoft (MSFT), Amazon (AMZN) and American Express (AXP) gave us the negative earnings that we needed. It was simply beautiful.

This morning, we have some key energy names, Schlumberger (SLB), Arch Coal (ACI) and an industrial, Ingersoll-Rand (IR) reporting. The energy names will be important, because they have had an impressive run, but more important is the weighting they have within the S&P 500. Ingersoll-Rand will also be one to watch, because it will be compared to Caterpillar's report, which came out this past Tuesday.

The only economic report we have today will be at 9:55 AM EST, with the revision of the Michigan Sentiment. I am expecting that the stock market may rise, in anticipation of good readings, into that number.

Today's close will be critical for my pull-back thesis to hold. Being that today is Friday, it will also impact how the weekly candle gets closed as well.

Finally, I would like to see the dollar index (/DX) close above the 79.30 level, and the VIX to close above yesterday's high (24.05).

Should be a bumpy ride.