Economic Reports Due out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), Existing Home Sales (10am), Richmond Fed Manufacturing Index (10am)
Premarket Update (Updated 8am eastern):
- US futures are slightly higher ahead of the open.
- European markets are trading on average +0.9% higher.
- Asian markets were about 1.0% higher.
Technical Outlook (S&P 500):
We got the bounce yesterday, that we knew was coming after such an extensive sell-off. The volume was weak yesterday (compared to what we saw during the sell-off) and little was accomplished in repairing the technical damage from the past month of trading. Steep downtrend off of the 5/1 highs still in place – resistance on the downtrend lies at 1324. Break it, and additional buying momentum could come back into the market. 1294-5 became key support for the S&P yesterday, and going forward, that will be the price level the bears need to break to continue the downtrend. The Russell index reclaimed its 200-day moving average, the only such index trading below it previously. At 785 you have a clean level of resistance to watch. VIX is still elevated and rests at 22. We are still considered oversold at this point in time. Continuation should not be unexpected at this point. 30-minute chart shows firm downtrend in place. S&P is trading below the 10-day, 20-day and 50-day moving averages.
My Opinions & Trades:
