Economic Reports Due out (Times are EST): FOMC Meeting Begins, ICSC-Goldman Store Sales (7:45am), Housing Starts (8:30am), Redbook (8:55am)

Pre-market Update (Updated 8:00am eastern):

  • US futures are slightly higher.
  • European markets are trading 0.5% higher.
  • Asian markets traded on average -0.4% lower.

Technical Outlook (SPX):

  • Yesterday provided us with sideways price action, with a slight bullish tilt to it.
  • 1346 represents where the moving average will be at today, and where the S&P will need to break through. Today’s slight strength ahead of the bell could see an open above that price level.
  • We are right back in overbought territory, but the thing is, if the market is indeed on a strong run, it can stay in this area, for quite a while.
  • A healthy sign for the market is that we are just below the upper-band of the Bollinger Bands (not out side of it) and riding the upper band nicely higher now.
  • There is now an established uptrend in place on SPX off of the 6/4 lows with consecuitive higher-highs and higher-lows now (two of each).
  • FOMC Statement to be issued tomorrow, which could stir up market rumors of QE3 (though I doubt it).
  • Quite a ways from current price, but ultimately, if the price can clear 1401 we’ll have a market that is very bullish.
  • SPX confirmed the inverse head and shoulders pattern on Friday.
  • Of late, respectable support lies at the 10-day moving average.
    • Has touched it multiple times in the past 2 weeks and held each time.
  • IH&S pattern very obvious on the 30-minute chart.
    • Confirmed on Friday.
  • Volume remains relatively average.
  • The markets in general have pulled back roughly 10% off of its recent highs which is typically considered a “pullback” in the markets.
    • Measured by recent highs to its most recent lows.
  • A break below 1306 would represent a resumption of the downward trend.
  • The VIX had one of its worst days in a long long time – dropping over 13% and pushing it back below 20 at 18.32. This is a very bullish sign for the market, as fear is starting to leave the markets.

My Opinions & Trades:

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