- Asian markets traded 0.5% lower.
- European markets are trading 0.5% higher.
- US futures are trading 0.2% higher ahead of the market open.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Durable Goods Orders (8:30), Redbook (8:55), FHFA House Price Index (9), S&P Case-Shiller HPI (9), Consumer Price Index (10), Richmond Fed Manufacturing Index (10)
Technical Outlook (SPX):
- SPX tagged 2000 for the first time ever, but after doing so retreated some in price.
- Dealing with large milestones or round numbers can often times create a form of resistance of their own not seen on the charts.
- SPX has risen 9 out of the last 12 days.
- Volume was extremely light yesterday - equal to what would be seen on a 1/2 day of holiday trading.
- Some signs creeping in that this market is getting overheated somewhat and may need to either pullback or consolidate.
- However that doesn't mean that will actually happen, and front running the move is a futile exercise.
- The five-day moving average represents a perfect trajectory of the market's direction at the moment.
- A lot of nontraditional traders are starting to get interested in this stock market which usually starts to show that there is too much "froth" in the market.
- Continue to tighten stops and take profits where you can on positions ensuring that you don't get caught with your pants down if the market suddenly sells-off.
- 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.