Economic Reports Due out (Times are EST): Jobless Claims (8:30am), Ben Bernanke Speaks (10am), Quarterly Services Survey (10am), EIA Natural Gas Report (10:30am), Consumer Credit (3pm)
Premarket Update (Updated 7:30am eastern):
- US futures are up moderately ahead of the open.
- European markets are trading 1.3% higher.
- Asian markets traded on average 1.3% higher.
Technical Outlook (SPX):
- Huge day for the S&P yesterday as it managed to climb back out of the downward trend-line at 1310 and breakthrough the bullish wedge that had been forming.
- Next key resistance level for the S&P to break through would be 1335.
- Market is well off of oversold conditions after yesterday’s bounce.
- S&P crossed back above the 10-day moving average, and a shade below the 20-day moving average. The latter of the moving averages has been problematic for the bulls to cross above recently.
- Major bottoms or at the least, interim bottoms, tend to make huge gains in the initials days following the bottom. See last October and September 2010.
- Minor support at 1249, 1209 would also represent a level of price support, should we close below 1275 support. .
- 30-minute chart looks to reverse the current downtrend.
- Nearest level of resistance for the S&P is at 1334 and 1340 and then again at 1357.
- VIX is still elevated and rests above 24.
My Opinions & Trades:
- Don’t be too anxious to re-short this market – let this bounce play itself out. Could very well be forming a bottom, don’t discount the possibility.
- Risk is elevated for new positions to the short-side.
- Long PPL at $27.65
Charts:
