Economic Reports Due out (Times are EST): Durable Goods Orders (8:30am), Jobless Claims (8:30am), EIA Natural Gas Report (10:30am), Kansas City Fed Manufacturing Index (11am)
Premarket Update (Updated 8am eastern):
- US futures are slightly higher ahead of the open.
- European markets are trading on average 1.1% higher.
- Asian markets were mixed/flat.
Technical Outlook (S&P 500):
Huge reversal yesterday in the market erasing over 1% in losses to finish in the green. As noted yesterday, gap-downs have the tendency to be most problematic for the bears. Despite the reversal, the S&P is still below the downtrend off of the 5/1 highs. S&P is well off of oversold levels. Additional resistance lies at the price level of 1340. Downtrend resistance level is at 1313. The 10-day moving average represents 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 three 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. VIX is still elevated and rests above 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:
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