Pre-market update (updated 9am eastern):
- European markets are trading 1.8% higher.
- Asian markets traded in a wide range from -1.1% up to +1.0%
- US futures are moderately higher ahead of the bell.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), PMI Manufacturing Index Flash (8:58am), FHFA House Price Index (9am), New Home Sales (10am), Richmond Fed Manufacturing Index (10am)
Technical Outlook (SPX):
- Strong move by the markets yesterday adding on to Friday's bounce.
- Today's market rallied parabolically 13 points off of its morning lows.
- Mini-downtrend off of recent SPX highs was broken yesterday.
- A push above 1574 would show that price is not simply a dead-cat bounce but looking to establish new highs yet again.
- Volume fell off some yesterday.
- Uptrend off of the November lows have been recaptured by the bulls.
- 10 and 20-day moving average sits right above price action on the SPX.
- With this mornings gap up, bears need to be very careful that they secure their profits and not allow the bounce to wipe away recent gains.
- 1538 is the KEY level for me today. We break 1538 and there is no support until we get under 1500.
- VIX settled in at 14.39.
- Markets don't care about the economy. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up.
- Both channels (July October 2012) and the price channel we are currently in are very similar in nature.
- We haven't seen a market pullback in excess of 4% since October/November time-frame.
My Opinions & Trades:
- Added DFT yesterday at $25.55.
- Sold BWLD at $92.90 for a 5.6% gain.
- Sold TRLA at $32.07 for a -3.0% loss.
- Will be looking to add 1-2 new long positions today.
- Remain Long DISCK at $71.12, TSCO at $105.55, DISH at $38.10
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX: