Pre-market update (updated 8:30am eastern):
- European markets are mixed in their trading.
- Asian markets were +0.5% higher.
- US futures are slightly lower ahead of the opening bell.
Economic reports due out (all times are eastern): Jobless Claims (8:30am), PMI Manufacturing Index Flash (9am), New Home Sales (10am), FHFA House Price Index (10am), EIA Natural Gas Report (10:30am)
Technical Outlook (SPX):
- Markets continue to languish of the past three trading sessions, but did manage yesterday to rally off of the lows and finish above the 10-day moving average.
- We tested the support level (as previously noted) at 1405 which represents the previous support level prior to breaking out.
- So far the pullback is not all that worrisome. Looks to be more of standard profit taking, and I’d expect the market to push higher in the coming days.
- Volume dropped off a bit yesterday and continues to trade at abnormally low levels.
- We’ve pulled off of overbought market conditions.
- Watch the 10-day moving average today at 1411 – this has represented a regular point for dip buying in the market to occur – just as we saw yesterday.
- It’s not uncommon if we consolidate below the 1422 resistance level for a while. You just don’t want to see a steep sell-off after touching the 1422 level.
- Strong spike in the VIX pushing it back up above 15.
- One area of concern is the 3 large gaps off of the 6/4 lows that remain unfilled, including 6/6, 7/26, 8/3
- At this point, uptrend support rests at 1370.
- SPX trading above all significant moving averages (10,20,50,200).
- If another sell-off were to ensue, watch for a break and close below 1354 for a new lower-low in the market.
My Opinions & Trades:
