- Asian markets traded 0.8% lower.
- European markets are trading 0.8% 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), ADP Employment Report (8:15), PMI Manufacturing Index (9:45), ISM Manufacturing Index (10), Construction Spending (10), EIA Petroleum Status Report (10:30)
Technical Outlook (SPX):
- For a fourth consecutive day, SPX has held the rising trend-line off of the December 2012 lows. This bodes well, but have yet to see price move off of the trend line which still puts it at risk of being broken.
- The 5-day moving average is also providing daily resistance for SPX.
- Volume was strong yesterday, but only due to it being end of month/quarter.
- Stocks are becoming notably oversold.
- VIX rose 2% to 16.30
- SPX 30-minute chart continues to show signs of a base forming.
- First day of the trading month historically has been a bullish month, but the in August and September they were both down.
- The market doesn't care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up.