Pre-market update (updated 8:30am eastern):
- European markets are trading -2.1% lower..
- Asian markets traded in excess of -2.3% lower.
- US futures are trading -1.5% lower ahead of the market open.
Economic reports due out (all times are eastern): Chicago Fed National Activity Index (8:30am)
Technical Outlook (SPX):
- SPX had a significant sell-off on Friday, with heavy continuation today.
- The current uptrend remains intact above 1340, after that. A ‘lower-low’ would be put in place at a close below 1325, the latter of which would make this market notably bearish.
- Sell-off comes, after a few days being short-term overbought.
- Volume continues to increase over the past four trading sessions.
- On 7/18 we managed to break through the descending trend-line off of the 4/2 highs (see chart below).
- But not this is starting to look like an incredible ‘head-fake’.
- Watch the SPRI that I posted this past Sunday and how it shows us near-ready for the reversal signal.
- Also note the price resistance the SPX is up against on the weekly chart.
- The VIX remains under 17. A push back above 20, would increase the bearishness of the market.
- 30-minute chart shows a nice channel uptrend being threatened by today’s early morning action.
My Opinions & Trades:
