Economic Reports Due out (Times are EST): MBA Purchase Applications (7am), New Home Sales (10am), FHFA House Price Index (10am), EIA Petroleum Status Report (10:30am)
Premarket Update (Updated 8am eastern):
- US futures are moderately lower ahead of the open.
- European markets are trading on average -1.7% lower.
- Asian markets were about -1.7% lower.
Technical Outlook (S&P 500):
After a morning pop higher yesterday mornining, the market eventually sold off the bullishness and finished breakeven on the day. Downtrend resistance level at 1324 yesterday proved to keep the bulls at bay. The 10-day moving average continues to represent continued downside resistance as well. 1294-5 becomes the key support level for the bears to push below. After that we have a support area at 1275. Volume the last two days has dropped off notably, showing a lack of conviction in the market bounce we saw. Steep downtrend off of the 5/1 highs still in place – resistance on the downtrend lies at 1320. Break it, and additional buying momentum could come back into the market. 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 have managed to come off of oversold levels in the short-term 30-minute chart shows perfect downtrend in place. S&P is trading below the 10-day, 20-day and 50-day moving averages.
My Opinions & Trades:
