Economic Reports Due out (Times are EST): MBA Purchase Applications (7am), ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), Pending Home Sales Index (10am)
Premarket Update (Updated 8:30am eastern):
- US futures are moderately lower ahead of the opening bell.
- European markets are trading close to 1% lower.
- Asian markets saw negative returns between -0.3% down to -1.9%.
Technical Outlook (S&P 500):
S&P made a strong move yesterday, in breakout form, heading straight for resistance at 1340. Closing in on a test of the 20-day moving average. Price managed to finish above the 10-day moving average yesterday for the first time since 5/2/12. S&P is now short-term overbought. 30-minute chart looks choppy, but nonetheless, there is a series of higher-highs and higher-lows. Volume has dropped off considerably over the past two days, and to a lesser extent since this market has bounced off recent lows. Nearest level of resistance for the S&P is at 1340 and then again at 1357. 1294-5 becomes the key support level for the bears to push below. After that we have a support area at 1275. VIX is still elevated and rests above 20 S&P is trading below the 20-day and 50-day moving averages.
My Opinions & Trades:
