Economic Reports Due out (Times are EST): International Trade (8:30am), Wholesale Trade (10am)
Pre-market Update (Updated 7:30am eastern):
- US futures are down moderately ahead of the open.
- European markets are trading -0.8% lower.
- Asian markets traded on average -1.6% lower.
Technical Outlook (SPX):
- Solid day of follow through for the market yesterday only to be wiped out in ithe final hour of trading.
- We are still well outside of the bullish wedge that was broken on Wednesday.
- S&P needs to find its way back above 1329, and then challenge resistance at 1335.
- Market close to being back in overbought conditions.
- S&P crossed back above the 10-day moving average, and traded most of the day above the 20-day moving average, only to close a shade below it yet again (recurring theme – lots of resistance at the 20-day).
- Major bottoms or at the least, interim bottoms, tend to make huge gains in the initial days following the bottom. See last October and September 2010.
- Minor support at 1249, 1209 would also represent a level of price support, should we close below 1266 support. .
- 30-minute chart has an inverse head and shoulders pattern emerging = bullish.
- VIX is still elevated and rests above 22.
My Opinions & Trades:
