Pre-market Update (Updated 9:00am eastern):
- US futures are moderately lower ahead of the open.
- European markets are trading -1.1% lower.
- Asian markets are traded in a wide range from -0.8% up to +1.8%.
Economic Reports Due out (Times are EST): GDP (8:30am), Jobless Claims (8:30am), Corporate Profits (8:30am), EIA Natural Gas Report (10:30am), Kansas City Fed Manufacturing Index (11am), Farm Prices (3pm)
Technical Outlook (SPX):
- SPX has managed to rally for the second day in a row and there by establishing a potential new “higher-low’ since the rally off of the 6/4 lows.
- Unable to break through the 10-day moving average, and minor resistance at 1035.
- Ideally, SPX needs to get back above 1360, to put to rest recent weakness, and the notion that the market is turning lower.
- Below 1306-1308 price level, will nullify the current rally off of the 6/4 lows.
- Would represent a ‘lower-low’ in the market.
- We are coming off of the oversold territory.
- Moderate gap downs like we are seeing this morning have been problematic for SPX to hold through out the day, and ultimately results in a notable rally off of those morning lows.
- Recent exception was on 6/25 where SPX managed to continue selling off the initial gap-down.
- Bulls have in place a bullish island reversal on the SPY chart, which is very similar to the one that we put in on 6/1-6/5 and rallied thereafter for a two-week period.
- Weekly chart is showing a shooting-star pattern last week, followed by weakness to begin this week
- Very traditional bearish pattern.
- VIX just a shade below 20.
My Opinions & Trades:
