Economic Reports Due out (Times are EST): NFIB Small Business Optimism Index (7:30am), ICSC-Goldman Store Sales (7:45am), Redbook (8:55am)
Premarket Update (Updated 8:00am eastern):
- US futures are moderately lower ahead of the open.
- Asian markets, on average, finished higher by about 0.3%.
- European markets are trading in a flat/mixed fashion.
Technical Outlook (S&P):
S&P made a fine recovery to finish in positive territory, after overnight futures were printing readings of more than 17 points down. Most importantly, the S&P managed to hold the rising support level at 1368. In the short-term, the market is well overbought. We tend to get bounces in the market rather quickly in this area. Triangle pattern has formed on the S&P with a series of higher-lows a and lower-highs. The S&P experienced an increased amount of selling Friday, and is back inside of the 1392/1357 price range, which muddles the market outlooks some. Possibility of the market breaking through the lower channel today. There is a short-term slight uptrend in place off of the 3/6 lows with support today at 1368. The S&P is now trading below the 10-day, 20-day and 50-day moving averages. 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:
