Pre-market update (updated 7:30am eastern):
- European markets are trading 2.2% higher on average.
- Asian markets traded -0.8% lower.
- US futures are trading nearly 1% higher ahead of the bell.
Economic reports due out (all times are eastern): Employment Situation (8:30am), ISM Non-Manufacturing Index (10am)
Technical Outlook (SPX):
- SPX is looking to bounce after a four-day pullback in the SPX
- Yesterday, price closed just a shade above the 10-day moving average and managed to bounce off of the 20-day MA as well.
- The lows from yesterday was a 61.8% Fibonacci retracement and 26 points off of recent highs. Respectable bounce off of the intraday lows yesterday, erasing 1/2 of the day’s losses.
- 1391 will represent minor resistance today, should we rally that high.
- We’ve come well off of the short-term overbought levels in the market, but on the weekly/mid-term we are still overbought.
- Selling over the past four days in the market have not shown must panic or concern at this point.
- At this point, uptrend support rests at 1345.
- SPX trading above all significant moving averages (10,20,50,200).
- Despite yesterday being the largest of the 4-day sell-off period, volume was also light.
- VIX indicator diverged signficantly yesterday dropping over -7% despite the market being down as well.
- Resistance barriers have, including the down-trend off of the 4/2 highs, been broken on Friday. There aren’t any major resistance barriers in the near term for the SPX to face. Minor resistance lies around 1402-6.
- If another sell-off were to ensue, watch for a break and close below 1329 for a new lower-low in the market.
- At this point, the goal for the bulls has to be to continue to trade higher and challenge the 1422 highs from 4/2 which are now well within reach.
- Of concern is the bearish crossover signal found in this week’s SharePlanner Reversal Indicator. Caution is warranted.
My Opinions & Trades:
