Pre-market update (updated 8:30am eastern):

  • Europe is trading 0.4% higher.
  • Asian markets traded in a wide range from -0.2% up to +0.8%.
  • US futures are slightly lower ahead of the open. 

Economic reports due out (all times are eastern): Employment Situation (8:30am), Consumer Sentiment (9:55am), Consumer Credit (3pm)

Technical Outlook (SPX):

  • SPX managed to put together its second straight day of gains, and making it more likely that the pullback is over. 
  • 50-day moving average continues to provide some overhead resistance, but the morning strength should help to push price through that range, at least early on. 
  • We’ve seen morning gap-ups this week result in near-immediate sell-offs after the open. Strong possibility that this could happen again today. 
  • Strong jobs number (on the surface at least) should help to provide support to the markets today. 
  • Weakness we’ve seen so far this week has resulted in more of a bull flag on the charts. 
  • 8-day EMA continues to provide support for the markets in the short-term. 
  • We are retesting the neckline of the triple-top on the SPX daily. Heavy resistance at this level for now. 
  • We are off of overbought conditions in the short-term. 
  • 30-minute chart finally has a hint of bullishness to it. 
  • Ideally for the bulls, if price action can close at or above 1429, the downtrend off of the September highs would be officially done and over with, as a new higher high would be established for the first time. 
  • Next level of price resistance rests at 1437. 
  • Fiscal Cliff discussions continues to dominate the news. 
  • SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
  • SPX currently has recaptured the 10, 20, and 200-day moving averages. 
  • VIX remains at 16.

My Opinions & Trades:

Chart for SPX:

The S and P 500 Market Analysis 12-7-2012