Pre-market update:
- Asian markets traded 0.2% higher.
- European markets traded 1.1% higher.
- US futures are trading 0.1% higher.
Economic reports due out (all times are eastern): ICSC-Goldman Same Store Sales (7:45), Redbook (8:55), FHFA House Price Index (9), Richmond Fed Manufacturing Index (10),
Technical Outlook (SPX):
- SPX continues the slow steady trickle higher.
- Key support for the index on a short-term basis is at 1671. Break that level, and we’ll likely see a more extended pullback.
- 1686 represents the rising trend-line off of the 6/24 lows.
- Slow and steady rise into 1700 – the key is that the SPX doesn’t violently sell-off as it nears 1700. Consolidation underneath the 1700 level is completely fine for the SPX.
- Plenty of room overhead before the SPX runs into any heavy resistance from the upper Bollinger Band. This has been an issue in recent past.
- 10-day moving average follows the rising trend-line mentioned above near perfectly, which should offer additional support.
- 1700 will be much talked about and should see some resistance as is traditionally the case prior to finally crossing the major threshold.
- Pay no attention right now that the market is over-extended. Such conditions rarely matters with the Fed’s involvement in the markets.
- VIX dropped to 12.29.
- This uptrend looks nearly the same as the one we saw on 4/19 and lasted until 5/19. I’m curious if it will lead to a similar extended pullback as a result.
- Markets don’t care about the economy. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up.
My Opinions & Trades:
- Added MENT at 20.55 yesterday.
- Added WU at 17.45.
- Sold VIP at 10.23 for a -2.3% loss.
- Current Longs: CL at 58.84, HRB at 30.19, SJM at 104.63, BDX at 99.98, GOOG at 887.47
- May look to take gains in stocks that are stagnant and replace them with better setups today.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
