Pre-market Update (Updated 8:30am eastern):

  • US futures are slightly higher ahead of the open.
  • European markets are trading -0.6% lower.
  • Asian markets are trading -0.9% lower.

Economic Reports Due out (Times are EST): None

Technical Outlook (SPX):

  • SPX saw one of its biggest sell-offs of the year yesterday.
    • Broke through the 10-day moving average, that had previously acted as reliable support for the market.
    • Interestingly, the 100-day moving average has been a tough resistance barrier over the past 3 days.
    • 50-day moving average was also broken without any fight.
  • It’s safe to say we are no longer overbought this morning.
  • Wednesday and Thursday’s volume levels are significantly higher on the SPY than what we saw on Monday and Tuesday when the market was up.
  • We broke the upward trend-line in SPX yesterday.
    • However, that doesn’t mean the uptrend is over, but the steepness and acceleration does flatten out, and puts into question where the market bottoms out at.
    • A drop below 1306 is what I’m watching for a shift in market sentiment.
  • The move off of the June 4th lows is very similar to the bullishness that we saw in October of last year and September 2010.
  • There is now an established uptrend in place on SPX off of the 6/4 lows with consecutive higher-highs and higher-lows now (two of each).
  • SPX has a confirmed the inverse head and shoulders price pattern in place.
  • 30-minute chart shows price action pulling back to support and the previous area where significant consolidation occurred.
  • VIX back above the pivotal 20 level.

My Opinions & Trades:

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