It is significant that Goldman Sachs is becoming more cautious on the BRIC economies and is focusing on the fallout in many areas of the overall Emerging Markets (EM) sector as a result of rising inflation.

Clive Corcoran remains doubtful that the EU technocrats can cobble together a feasible solution to a monetary union which lacks fiscal unity and discipline from all of its member states.

A zone of considerable price congestion on the chart for the S&P 500 suggests that the bulk of the rebound gains are now behind us.

CMF, which tracks the municipal debt obligations of California, has retraced all of the rebound seen in December and once again is on the defensive.

EWI, an exchange traded fund which tracks the MSCI Italy Index looks unattractive longer term, and joins other European equity indices, including EWP (Spain) and EWK (Belgium), which should be avoided.

The performance of precious metals during 2010 was one of the standout investment themes, and Clive Corcoran remains firm in his view that gold and silver are still in fundamentally bullish phases.

The overall tone for equities remains positive and the ADP number yesterday helped to ameliorate the sentiments from turnaround Tuesday.

The Russell 2000 achieved the 800 level that Clive Corcoran indicated would act as a target/attractor for the index. The reversal and 1.6% decline yesterday would seem to suggest that the micro caps may be in need of a pause to refresh.

The Nasdaq 100 could be in the vanguard of a late year advance but also leading the charge, should there be one, in a sharp correction during the first few sessions of 2011.

Thin markets seem to be favoring the bulls, and with plenty of accommodative policy from central banks and the view that one can apply a linear weighting system of pluses and minuses to various major factors, there is "on-balance" a positive outlook for equities which should keep markets rising for some time yet.