Economic Reports Due out (Times are EST): Employment Situation (8:30am), Personal Income and Outlays (8:30am), PMI Manufacturing Index (9am), ISM Manufacturing Index (10am), Construction Spending (10am)
Premarket Update (Updated 8:30am eastern):
- US futures are flat and off their overnight highs prior to the open.
- European markets are trading -2.0% lower. .
- Asian markets traded on average -0.7% lower.
Technical Outlook (SPX):
We saw the SPX recover from most of its losses yesterday to close a shade below breakeven. Huge miss on employment number has us down near 2% at the open today, and a confirmed breakout of the bear-flag pattern that had been developing. S&P is poised to test the 200-day moving average today at the open, which we haven’t been below since December of last year. Large gap downs, such as what we are seeing this morning, have a difficulty of holding at their intraday-lows and often times will bounce creating a short-squeeze effect. We came off of overbought levels yesterday, and are beginning to see a steady increase in trading off of recent low-level volume. We are breaking below the lows (1291) from last month as well. The SPY chart shows a well defined bearish island reversal over this past week, that does a great job in predicting new downturns. 30-minute chart has a newly formed double top in place. Nearest level of resistance for the S&P is at 1334 and 1340 and then again at 1357. Watch for additional support at 1275. VIX is still elevated and rests above 24 S&P is trading below the 10-day, 20-day and 50-day moving averages.
My Opinions & Trades:
