Economic Reports Due out (Times are EST): ICSC-Goldman Store Sales (7:45am), Consumer Price Index (8:30am), Retail Sales (8:30am), Empire State Manufacturing Survey (8:30am), Redbook (8:55am), Treasury International Capital (9am), Business Inventories (10am), Housing Market Index (10am)
Premarket Update (Updated 7:00am eastern):
- US futures are moderately higher at the open.
- Asian markets traded mixed from -1.2% up to +0.8%
- European markets are trading slightly higher.
Technical Outlook (S&P 500):
S&P crossed a very important price level yesterday by closing below 1340 at 1338. Price action is now below the previous two higher-lows. Closing lows haven’t been seen since 2/2/12. Intraday, there was a willingness by the market to buy the dip, but that was quickly crushed in afternoon trading. 30-minute chart shows that the bear flag pattern was confirmed, as well as the one in the 5-minute chart. Now that we’ve broken 1340 price support level, there are few support levels until you reach 1294 area. We are slightly off of oversold levels at this point. Confirmed the double-top pattern on the S&P daily. S&P is now trading below the 10-day, 20-day and 50-day moving averages. 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:
