Quote: I'm not sure about development, but it looks to me like it's going to move NE away from the coast. The clouds at already moving that way: http://www.goes.noaa.gov/HURRLOOPS/huecwv.html
I've been watching the radar, and I'm not seeing that there, but I do notice what you mention on the satellite. The dry air north of it may play a factor too. Need a bit more model input first to be 80% sure.