Economic Reports Due out (Times are EST): Consumer Sentiment (9:55am)
Premarket Update (Updated 8am eastern):
- US futures are mixed/flat ahead of the opening bell.
- European markets are trading mixed/flat.
- Asian markets were mixed/flat as well.
Technical Outlook (S&P 500):
- Another intraday recovery in the S&P to finish in the green for the fourth straight day.
- 10-day moving average continues to act as resistance for the S&P.
- Steep downtrend off of the 5/1 highs was broken yesterday at the close. Not a game changer, as a downtrend that steep, was bound to be broken sooner than later.
- Four-day bounce has pushed the S&P towards short-term overbought. Weekly chart we remain oversold.
- Volume was notably less yesterday.
- Nearest level of resistance for the S&P is at 1340 and then again at 1357.
- 1294-5 becomes the key support level for the bears to push below. After that we have a support area at 1275.
- VIX is still elevated and rests near 22.
- 30-minute chart shows some consolidation finally, and the potential for a higher-low.
- 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.
- If the bulls can finish higher today, particularly if they can break the week’s highs, we should see some nice momentum develop for next week.
- Covered SIG at $42.44 from $46.33 for a 8.4% gain.
- Shorted CPWR at $9.03.
- Remain short $JCI at $30.29, WCRX at $20.15, ATVI at $12.14.
Chart:
