- European markets are trading 0.3% higher.
- Asian markets traded 0.2% lower.
- US futures are trading 0.2% higher.
Economic reports due out (all times are eastern): Retail Sales (8:30), Empire State Manufacturing Survey (8:30), Business Inventories (10)
Technical Outlook (SPX):
- SPX is trading at a level now that makes it nearly impossible to advance higher. We are up seven straight days - eight would be simply amazing, nine would be unheard of.
- I expect a pullback of some kind, small or large, to occur today, but no later than tomorrow. History demands it.
- SPX continues to trade against the upper Bollinger Band as welll - a place that can often times lead to heavy resistance.
- Steep upward trend-line off of the SPX 6/24 lows has rising support at 1649. SPX has rallied 120 points since then. and up 11 out of the last 13 days.
- A new higher high was formed Thursday in a most convincing manner, and officially ended the downtrend off of the 5/22 highs.
- Volume has been relatively light throughout the rally.
- VIX remains under 14.
- Careful to note all the gaps that have formed on this uptrend off of the lows of 6/24. More times than not a market will ultimately come back and fill those gaps.
- 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.
My Opinions & Trades:
Chart for SPX: