Current Long Positions (stop-losses in parentheses): AGYS (7.60),SPY July 130 Calls, AAPL July 330 Calls, SBGI (9.67), VVTV (7.42), MHLD (7.04)
Current Short Positions (stop-losses in parentheses): None
BIAS: 7% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), FHFA House Price Index (10am), EIA Petroleum Status Report (10:30am), FOMC Meeting Announcement (12:30pm), Bernanke Press Conference (2:15pm)
My Observations and What to Expect:
- Futures are slightly down..
- Asia rallied over 1.6%, and Europe is trading flat and mixed.
- Yesterday’s rally helped to repair some of the technical damage done over the last 7 weeks.
- We broke convincingly above the resistance at 1293 which represented the highs of the doji candle formed on the weekly S&P last week.
- As it currently stands right now, we are forming a bullish morning star candle pattern over the past 3 weeks on the S&P weekly chart.
- Also important was that the S&P finished above the resistance formed by the 4/18 and 2/24 lows on the S&P.
- Price action also managed to break back into the downward channel that the S&P traded in for all of May.
- Assuming we can break through 1300, the target for the bulls would become the downward trend-line formed off of the 5/2 highs, which currently sees resistance at 1324.
- Volume was slightly higher, but still below average of late, likely due to investors remaining on the sideline ahead of the FOMC.
