Economic Reports Due out (Times are EST): MBA Purchase Applications (7am), Housing Starts (8:30am), Industrial Production (9:15am), EIA Petroleum Status Report (10:30am), FOMC Minutes (2pm)
Premarket Update (Updated 8:30am eastern):
- US futures are moderately higher at the open.
- European markets are trading mixed/flat.
- Asian markets were down hard, ranging from -1.1% all the way down to -3.2%.
Technical Outlook (S&P 500):
Despite a respectable bounce in the early going, the S&P and market in general, managed to give up all of its day’s gains and finish decisively in the red. Eight out of the last ten trading sessions have finished lower, and we are now firmly back in oversold territory short-term. To say this market is due for a bounce is quite the understatement. Price action is now below the previous two higher-lows. Closing lows haven’t been seen since 2/2/12. 30-minute chart shows a very strong downtrend in place with consecutive lower-highs and lower-lows. Now that we’ve broken 1340 price support level, there are few support levels until you reach 1294 area. Confirmed the double-top pattern on the S&P daily. S&P is now trading below the 10-day, 20-day and 50-day moving averages. On the weekly chart, we confirmed the bearish wedge pattern that we had been following for weeks. Very bearish development for the market.
My Opinions & Trades:
