- Asian markets traded 0.4% higher.
- European markets are trading 0.3% lower.
- US futures are trading 0.1% lower ahead of the market open.
Economic reports due out (all times are eastern): MBA Purchase Applications (7), PMI Manufacturing Index Flash (9:45), New Home Sales (10), EIA Petroleum Status Report (10)
Technical Outlook (SPX):
- SPX extended its longest winning streak of the year to six straight days.
- Key resistance at 1873 was broken yesterday which bodes well for the bulls going forward.
- Resistance at 1883 came in and created some selling in to the close that erased about 40% of its gains at the close.
- The probability of a relief point or possibly a pullback dramatically increases. Rallies that extend beyond six days becomes very difficult to sustain without one.
- Volume on SPY continues to be lacking.
- Continue to watch whether the bulls give up 1873 on any kind of pullback in the coming days.
- After forming a lower-low two weeks ago, SPX has now formed a higher high by breaking above 1873.
- Despite this, SPX remains range-bound over the last two weeks.
- VIX all the way down to 13.19.
- Inverse head and shoulders that was possibly being developed has been compromised on the SPX 30 minute charte.
- The Market doesn't care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up.
My Opinions & Trades: