Economic Reports Due out (Times are EST): International Trade (8:30am), Jobless Claims (8:30am), Import and Export Prices (8:30am), Bernanke Speaks (9:30am), EIA Natural Gas Report, Treasury Budget (2pm)
Premarket Update (Updated 8:00am eastern):
- US futures are slightly higher ahead of the open.
- Asian markets, are slightly lower – about -0.2%.
- European markets are trading about 0.4% higher.
Technical Outlook (S&P):
Yesterday marked another extreme sell-off with intraday recovery into the close. At one point, the market almost went green. All of these intraday recoveries (since Monday) tells me that this market is ready for a bounce, being that we are short-term oversold. Whether we can actually reverse course or not beyond just a dead-cat bounce is anyone’s guess. S&P broke cross some pretty significant bearish barriers yesterday, by dropping below 1357, and putting in the S&P’s first true lower-low since the rally began back in December. We also confirmed the double-top pattern on the S&P daily. Key support lies at 1340. The triangle that we spoke of before has been broken out of to the downside on the daily S&P. The S&P is now trading below the 10-day, 20-day and 50-day moving averages. The market’s whip-saw action of late has created a convergence of moving averages (10, 20 & 50 DMA’s). The previous trend-line off of the October lows has become resistance for price action on the underside. On the weekly chart, we confirmed the bearish wedge pattern that we had been following for weeks. Very bearish development for the market.
My Opinions & Trades:
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