- Asian markets traded 1.1% higher.
- European markets are trading 0.9% higher.
- US futures are trading 0.4% higher ahead of the market open.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Consumer Price Index (8:30), Redbook (8:55), FHFA House Price Index (9), Existing Home Sales (10), Richmond Fed Manufacturing Index (10)
Technical Outlook (SPX):
- Dip buyers came in again to rally SPX off of the rising trend-line that begun off of the April lows.
- If the bears are going to take control of the market they need to push price below the trend-line at 1959.
- Once again a test of the 20-day moving average intraday spurred on a intraday reversal.
- Volume was extremely light yesterday - half of what we have seen in the previous two trading sessions.
- VIX remains volatile, this time rising 6.2% to 12.81. However, the trading range has shrunk each of the last two sessions.
- SPX continues to trade in a month long range for July. A break above all-time highs would change this.
- Bulls still hold the advantage in this market. The bears managed yet again to not seize the opportunity to push this market lower with the geopolitical headlines facing the market.
- For the bears, a close below 1952 is very real and possible. If broken, it will confirm a short-term double top in the index.
- Additional key support levels for the SPX to hold in the future is 1944 and 1925.
- Very real chance that we may be entering into an extended period of consolidation between the 1950's and 1980's.
- 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.