Economic Reports Due out (Times are EST): Employment Situation (8:30am), Treasury STRIPS (3pm)
Premarket Update (Updated 8:00am eastern):
- US futures are flat ahead of the open.
- Asian markets traded in a wide range from -0.8% up to +0.4%
- European markets are trading 0.4% lower.
Technical Outlook (S&P):
The S&P experienced an increased amount of selling yesterday, and dropped back inside of the 1392/1357 price range, which muddles the market outlooks some. Don’t discount the potential for the market putting in a lower high here and continuing the downtrend that started on 4/2, particularly if the market sells off hard today on the employment number. There is a short-term slight uptrend in place off of the 3/6 lows with support today at 1368. The S&P found some support yesterday off of the 10-day moving average by closing just a shade above it. We are well off of overbought levels now. There was some signs of dip buying yesterday, but it was weak and eventually sold off. 10-day moving average crossed back above the 20, and 50-day moving averages. 30-minute chart shows a confirmed head and shoulders pattern in place (see below). The market’s whip-saw action of late has created a convergence of moving averages (10, 20 & 50 DMA’s). The previous trend-line off of the October lows has become resistance for price action on the underside. 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:
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