Economic Reports Due out (Times are EST): MBA Purchase Applications (7am), Productivity and Costs (8:30am), EIA Petroleum Status Report (10:30am), Beige Book (2pm), Treasury STRIPS (3pm)
Premarket Update (Updated 7:30am eastern):
- US futures are up strong, well over 1%.
- European markets are trading 1.5% higher.
- Asian markets traded on average 1.6% higher.
Technical Outlook (SPX):
- We experienced a slight bounce yesterday, but even so could not close above the 200-day moving average.
- Today ‘s morning strength potentially puts us back above 1300, and would represent about a 33 point bounce off of Monday’s lows.
- We remain oversold in both short and long-term time-frames.
- Watch 1310 area as a potential break-point in the current downtrend and a move above the existing bullish wedge that is forming.
- The S&P is now trading below all major moving averages.
- Bullish wedge forming on the daily, that has been little noticed by other traders. We bounced off of the lower end of the wedge at Monday’s lows.
- Minor support at 1249, 1209 would also represent a level of price support, should we close below 1275 support. .
- 30-minute chart shows a bounce playing out here.
- Nearest level of resistance for the S&P is at 1334 and 1340 and then again at 1357.
- VIX is still elevated and rests above 24.
My Opinions & Trades:
