Economic Reports Due out (Times are EST): Durable Goods Orders (8:30am), Jobless Claims (8:30am), EIA Natural Gas Report (10:30am), Kansas City Fed Manufacturing Index (11am)
Premarket Update (Updated 8am eastern):
- US futures are slightly higher ahead of the open.
- European markets are trading on average 1.1% higher.
- Asian markets were mixed/flat.
Technical Outlook (S&P 500):
- Huge reversal yesterday in the market erasing over 1% in losses to finish in the green.
- As noted yesterday, gap-downs have the tendency to be most problematic for the bears.
- Despite the reversal, the S&P is still below the downtrend off of the 5/1 highs.
- S&P is well off of oversold levels.
- Additional resistance lies at the price level of 1340.
- Downtrend resistance level is at 1313. The 10-day moving average represents continued downside resistance as well.
- 1294-5 becomes the key support level for the bears to push below. After that we have a support area at 1275.
- Volume the last three days has dropped off notably, showing a lack of conviction in the market bounce we saw.
- Steep downtrend off of the 5/1 highs still in place – resistance on the downtrend lies at 1320. Break it, and additional buying momentum could come back into the market.
- VIX is still elevated and rests above 22.
- We have managed to come off of oversold levels in the short-term
- 30-minute chart shows perfect downtrend in place.
- S&P is trading below the 10-day, 20-day and 50-day moving averages.
My Opinions & Trades:
- There is the potential for a shift in market sentiment based on what the bulls can do with yesterday’s reversal. Keeping the momentum up is key.
- Shorted SIG at $46.33
- Remain short $JCI at $30.29, WCRX at $20.15, ATVI at $12.14
- No plans to add additional short positions today.
Chart:
