Economic Reports Due out (Times are EST): Empire State Manufacturing Survey (8:30am), Treasury International Capital (9am), Industrial Production (9:15am), Consumer Sentiment (9:55am)
Pre-market Update (Updated 8:30am eastern):
- US futures are slightly higher ahead of the open.
- European markets are trading 1.2% higher.
- Asian markets traded on average -0.6% lower.
Technical Outlook (SPX):
- Solid day for the bulls yesterday, as price action is finally starting to move out of the 5-day consolidation range.
- To spur on the bulls to additional buying, there needs to be a close above 1334
- Today is options expiration so there is an increased likelihood of volatility in the market (as if we don’t have enough already).
- 50-day moving average could create headwinds for SPX at 1347.
- Continue to follow SPX’s 10-day moving average for short-term support in this market.
- Inverse head and shoulders forming over the past month – currently working on the right shoulder – could see confirmation today.
- IH&S pattern very obvious on the 30-minute chart.
- SPX is no longer overbought.
- Volume remains relatively average.
- The markets in general have pulled back roughly 10% off of its recent highs which is typically considered a “pullback” in the markets.
- A break below 1306 would represent a resumption of the downward trend.
- VIX is still elevated and rests above 21 – below 20 and the bear’s hopes for a break lower is greatly hampered. However, it did take a pretty solid hit yesterday.
My Opinions & Trades:
