Pre-market update (updated 9:00am eastern):
- European markets are -0.3% lower.
- Asian markets took a hard hit finishing -1.4% lower.
- US Markets are slightly lower ahead of the opening bell.
Economic reports due out (all times are eastern): Consumer Credit (3pm)
Technical Outlook (SPX):
- SPX sold off about -1% on Friday, and recovered about 1/3 of its losses off the lows of the day.
- There was not any not notable technical damage done to the SPX from previous two trading sessions.
- 30-minute chart shows a well-deserved pullback, but the series of higher-highs and higher-lows still in place.
- Last two days have helped the market come off of short-term overbought levels.
- Roughly 1330 represents today’s rising support level that must be held, which is 24 points away from Friday’s close.
- In order for a violation to occur price must close below 1330 – intraday breaks carries little significance.
- SPY chart shows that the Friday gap down held (which the opposite happens more times than not)
- 3 out of the last 4, and the last 2 down days as well, have all ended in doji-candles, showing that the selling has been some what controlled and lacked any real fear from market bulls.
- SPRI indicator is showing a market that is beginning to enter bullish extremes. No reversal though.
- An area of concern for the bulls is the fact that the the rally off of the 6/4 lows is forming a bearish wedge.
- Breaking through the 1390’s will be difficult as there are plenty of separate resistance levels in that area.
- Below 1306-1308 price level, will nullify the current rally off of the 6/4 lows – would represent a ‘lower-low’ in the market.
- Despite Friday’s sell-off , VIX finished notably in th red.
My Opinions & Trades:
- I will be looking to add two new positions to the portfolio amid recent market weakness.
- Closed WBC on Friday for a -3.95% loss (Stopped out).
- No new positions added on Friday.
- I don’t see really any strong evidence to be short “right-now”.
- Still long WNR at $20.51, CMG at 378.44, UA at $93.09, HD at $51.50 .
- Increasing my stop-loss in WNR to $22.70 locking in 10.7% in gains and providing plenty of wiggle-room for the stock.
Charts:
