Pre-market update (updated 9:00am eastern):
- Europe is trading -0.6% lower.
- Asian markets traded in a wide/mixed range, from -1.6% up to +1.9%.
- US futures are flat ahead of the bell.
Economic reports due out (all times are eastern): Consumer Price Index (8:30am), Jobless Claims (8:30am), Empire State Manufacturing Survey (8:30am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am), EIA Petroleum Status (11am)
Technical Outlook (SPX):
- Despite being up nicely on the day, SPX reversed 25 point to finish notably lower on the day, yet again.
- Price action over the last 6 days has left the market overextended to the downside and about 75 points lower since the election.
- Looking at the weekly chart, we've typically bounced after testing the lower bollinger band on the weekly chart, which is currently at 1341, and is my target for a bounce - just like we did on 6/1.
- Market remains fixed in oversold territory, and setting up for a Thanksgiving bounce next week (typically bullish for trading).
- After trading in a well defined declining channel, the selling accelerated yesterday, by breaking through the declining resistance level.
- Price Support at 1355 was broken as well.
- If there is a rally in the coming days, I'd look for 1404 to be targeted resistance.
- Last time we broke through the 200-day SMA, it led to a major sell-off in August 2011 that lasted through early October of that same year.
- 30-min chart shows a breakdown in price as well.
- VIX shot up to just a shade below 18.
My Opinions & Trades:
- Covered LULU at $68.00 from $70.00 for a 2.9% gain.
- Sold MLNX at $83.51 from $86.45 for a -3.4% loss.
- Covered INVN at $10.79 from $11.31 for a 4.6% gain
- Shorted CLNE at $12.88
- Remain short Short SODA at $35.69, HOLX at $20.16 and CAKE at $33.26.
- Will watch today's action and look to cover 1-2 of my shorts on any major sell-off.
Chart for SPX: