Pre-market update (updated 7am eastern):

  • Europe is trading 0.7% higher.
  • Asian markets traded in a wide range from -1.2% up to +0.6%.
  • US futures are moderately higher ahead of the open. 

Economic reports due out (all times are eastern): PMI Manufacturing Index (8:58am), ISM Manufacturing Index (10am), Construction Spending (10am)

Technical Outlook (SPX):

  • Another day of consolidation below the 50-day moving average on SPX. 
  • Most importantly on the price action is that it is not being rejected at the 50-day MA – just settling below it for now. 
  • Today’s gap open should put price action right at, or above the moving average. 
  • Volume was strong on Friday, but most likely due to end of month window dressing. 
  • Stocks remain overbought in general and on the SPX. This can last a while, and does not necessarily mean that a pullback is looming. 
  • 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. 
  • Over the last 10 trading sessions, the market has rallied strong and not provided a much needed pullback/lhigher-low. 
  • First days of the trading month tend to be overly bullish. Expect the same today. 
  • Note the support at the 8-day exponential moving average for this market. Rising support is currently at 1404. 
  • Next level of 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 dropped to 15. 

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 12-3-12