Current Long Positions (stop-losses in parentheses): AFFX (6.92), ENTG (8.95),
Current Short Positions (stop-losses in parentheses): None
BIAS: 10% Long
Economic Reports Due Out (Times are EST): Housing Starts (8:30am), Jobless Claims (8:30am), Current Account (8:30am), Bloomberg Consumer Comfort Index (9:45am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
- Futures are down around 1% heading into the open.Â
- Asia was mixed in trading ranging from -0.7 to +0.3. Europe was down on average about -0.5%
- Based on futures we are looking at an open around 1277 on the S&P which would essentially wipe out a good portion of yesterday’s gains.
- On a positive note, the S&P chart over the last 3 days has formed a morning star candle pattern, which is very bullish and typically leads to short-term bullishness.Â
- Yesterday’s action failed to break through the 10-day moving average as well as the declining resistance that used to act as support
- Yesterday’s strong gains did little to improve the technical charts – still heavily damaged at this point.Â
- Watch the 200-day moving average on the Nasdaq (2633)- if it falls below it, will signal further declines ahead for the broader markets.Â
- The market continues to break down, closing in on the S&P price support at the 1250 (3/16 lows) level and the 200-day MA at 1253.
