Economic Reports Due out (Times are EST): Challenger Job-Cut Report (7:30am), ADP Employment Report (8:15am), GDP (8:30am), Jobless Claims (8:30am), Corporate Profits (8:30am), Chicago PMI (9:45am), EIA Natural Gas Report (10:30am), EIA Petroleum Report (11am), Farm Prices (3pm)
Premarket Update (Updated 8:30am eastern):
- US futures are flat and off their overnight highs prior to the open.
- European markets are trading close to 0.5% higher.
- Asian markets traded on average -0.6% lower.
Technical Outlook (S&P 500):
S&P finds itself in a well-defined bear-flag pattern at the moment – at its lower range. After the initial drop yesterday at the open the market traded flat to sideways for the remainder of the day. We came off of overbought levels yesterday, and are beginning to see a steady increase in trading off of recent low-level volume. Of the current down trend, we’ve put in an initial/legitimate ‘lower-low’ – recent strength and bear-flag pattern on the S&P daily suggests we are now putting in the ‘lower-high’. The SPY chart shows a well defined bearish island reversal over the last three days, that does a great job in predicting new downturns. 30-minute chart has a newly formed double top in place. Nearest level of resistance for the S&P is at 1340 and then again at 1357. 1294-5 becomes the key support level for the bears to push below. After that we have a support area at 1275. VIX is still elevated and rests above 24 S&P is trading below the 20-day and 50-day moving averages.
My Opinions & Trades:
