Pre-market Update (Updated 9:00am eastern):
- US futures are down almost -1% ahead of the open.
- European markets are trading -1.1% lower.
- Asian markets are traded -0.6% lower.
Economic Reports Due out (Times are EST): Chicago Fed national Activity Index (8:30am), New Home Sales (10am), Dallas Fed Manufacturing Survey (10:30am)
Technical Outlook (SPX):
- SPX manage to pair some of its losses with a descent bounce on Friday.
- Found support at the previous inverse head and shoulders breakout level of 1324.
- If we fail to hold this level, a likely test comes again of 1306.
- The 10-day moving average was reclaimed on Friday.
- The 100-day moving average has been a tough resistance barrier for the market of late.
- In order to resume the rally that started off of the 6/4 lows, bulls need to drive price back above 1360.
- Market is nearing oversold levels in the short-term. One or two more good sell-offs should do it.
- There is 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 at 18 and below the bearish mark of 20.
My Opinions & Trades:
