Current Long Positions (stop-losses in parentheses): SSO (48.97), ZBRA (38.10), QID (10.49), SDS (22.29)
Current Short Positions (stop-losses in parentheses): EXPD (55.26), DKS (35.79)
BIAS: 14% Long
Economic Reports Due Out (Times are EST): GDP (8:30am), Employment Cost Index (8:30am), Consumer Sentiment (9:55am)
My Observations and What to Expect:
- Futures are slightly negative heading into the open.
- Asian markets traded lower (Nikkei -1.1%), while European markets trade in mixed fashion.
- S&P still struggling to close above 1300, though did breach the mark on intraday trading.
- Price on the S&P remains nicely situated within the narrow trading channel and above all the major moving averages.
- Volume was low yesterday, and the market is back in overbought territory.
- Today’s GDP report will shape market action.
- Yesterday marked a decisive close higher, which all but nullified the bear’s short-term chances of driving this market lower.
- Unlike the prior market session, the bulls managed several times to push the S&P above 1300, but need to ultimately close above the 1300 level.
- Bearish divergences in the RSI, MACD, and CCI, are concerning for me, as they are making lower-highs while the market is making higher highs.
- The 10-day moving average continues to hold for the S&P, closing below it (and just barely) once in the past 40 trading session.
- Also of note, the market made a new recent high, which keeps the existing uptrend in place.
- Dip buying continues to be a formidable force in this market.
- 1261 represents the short-term ‘higher-low’ on the daily charts.
- For the bears – Hold Resistance at the 1300 on the daily charts. Don’t let the bulls close above that important psychological level.
- For the bulls – Need to close well above 1300 in order to put doubts to rest.
Here Are The Actions I Will Be Taking:
