Pre-market update (updated 9:00am eastern):
- European markets are 0.7% higher.
- Asian markets sold off an additional -0.4% today.
- US Markets are slightly higher heading into the open.
Economic reports due out (all times are eastern): Consumer Credit (3pm)
Technical Outlook (SPX):
- SPX attempted to sell-off yet again yesterday, but recovered most of its losses before the close.
- After pulling back for three straight sessions, the market is starting to look ready to try and push higher again.
- Tested the 10-day moving average yesterday and bounced accordingly.
- We’ve pulled back nicely off of the short-term overbought conditions in the market.
- 1374 represents some short-term resistance, and a break & close above that price level would represent another “higher-high” for SPX.
- 30-minute chart shows a well-deserved pullback.
- Roughly 1333 represents today’s rising support level that must be held, which is 24 points away from Friday’s close.
- In order for a violation to occur price must close below 1333 – intraday breaks carries little significance.
- 4 out of the last 5, and the last 3 down days as well, have all ended in doji-candles for SPY, showing that the selling has been some what controlled and lacked any real fear from market bulls.
- SPRI indicator is showing a market that is beginning to enter bullish extremes. No reversal though.
- An area of concern for the bulls is the fact that the the rally off of the 6/4 lows is forming a bearish wedge.
- Breaking through the 1390’s will be difficult as there are plenty of separate resistance levels in that area.
- Below 1306-1308 price level, will nullify the current rally off of the 6/4 lows – would represent a ‘lower-low’ in the market.
- Despite Friday’s sell-off , VIX finished notably in th red.
My Opinions & Trades:
