Economic Reports Due out (Times are EST): S&P Case-Shiller HPI (9am), Consumer Confidence (10am), State Street Investor Confidence Index (10am), Dallas Fed Manufacturing Survey (10:30am)
Premarket Update (Updated 8:30am eastern):
- US futures are moderately higher ahead of the opening bell.
- European markets are trading mixed/flat.
- Asian markets finished 1% higher.
Technical Outlook (S&P 500):
- Choppy session on Friday, that ended up seeing the market sell-off into the afternoon.
- Daily chart of the S&P shows me that we are merely forming another bear-flag pattern.
- The 10-day moving average was tested on Friday for the third time in the past four sessions and still did not manage to close above the declining resistance level.
- Four-day bounce from last week has pushed the S&P towards short-term overbought. Weekly chart we remain oversold.
- 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 above 20
- 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:
- If the market can hold the pre-market gains it is seeing, there’s a good chance, that in the days to come it tries to squeeze the bears out of their short positions.
- I’ll be keeping a tight leash on my existing short positions, and may add a couple of longs to offset my exposure.
- Remain short CPWR at $9.03, short $JCI at $30.29, WCRX at $20.15, ATVI at $12.14.
Chart:
