Economic Reports Due out (Times are EST): Employment Situation (8:30am), Factory Orders (10am), ISM Non-Manufacturing Index (10am)
Premarket Update (Updated 8:40am eastern):
- U.S. Futures are up strong, on a better than expected GDP report.
- Asian markets were mixed/flat.
- European markets are up in excess of 1%
Technical Outlook (S&P):
- Today is about the close. If the S&P closes above 1333, it would represent a break of long-term resistance and the downward trend-line.
- Volume dropped off yesterday.
- Potential for an exahaustion gap up today.
- Some minor support at 1286, but the next notable level of support comes from the up-trend off of the November lows, and currently lies at 1278.
- Whether this market can sustain itself to the upside is anyone’s guess long-term. But Short-term, there needs to be a pullback.
- The S&P is looking to close higher for the 5 consecutive week.
My Opinions:
- The more we rally like this, the more I become convinced that we will see a significant pullback. I can’t think of a time where that hasn’t been the case.
- We have yet to see the “buy-the-dip” mentality cease. Each market open where weakness is present, the bulls buy the open, no matter what, and recovers most if not all of the day’s losses. As long as this persists, the bears do not stand a chance, and the bull rally will prevail.
My Portfolio:
- 12.5% Net Short
- Initiated a long position in (TZA) last week at $22.26
Chart:
