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.
- 50-day moving average stopped any hopes of a rally – and will be key resistance for today.
- 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.
- Represents the slightly descending resistance level off of the 4/2/12 highs.
- 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:
