Pre-market update:

  • Asian markets traded 1.2% higher.
  • European markets are trading 1.0% higher. 
  • US futures are trading 0.7% higher. 

Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30), Jobless Claims (8:30), PMI Manufacturing Index (8:58), ISM Manufacturing Index (10), Construction Spending (10), EIA Natural Gas Report (10:30)

Technical Outlook (SPX):

  • Volatile session yesterday saw the SPX give up all the day's gains. 
  • Today's bullishness has the SPX gapping higher and will be opening at resistance, which is at 1698. 
  • There is a strong chance that we could see SPX push above 1700 for the first time ever. 
  • The beginning of the month typically sees some big price swings. For June and July, the SPX saw bullish openings to kick start the month. 
  • SPX will continue to digest the direction provided in yesterday's FOMC statement. 
  • Well off of overbought levels as a result of the last 2-3 weeks of consolidation across the markets. 
  • Since last Friday the SPX has been in an extremely tight consolidation pattern, and a far broader one dating back to 7/12. 
  • Between 1671 and 1676, which also corresponds with the previous all-time highs reached in May 2013, is providing the market with excellent support. 
  • Volume saw a nice uptick yesterday. 
  • So far the new trend-line off of the 6/24 lows connects its first higher-low with Friday's price action. This could change, but that is what we are working with at this point. 
  • VIX remained yesterday at 13.45. 
  • 30-minute chart has a nice uptrend of higher highs and higher lows in place. 
  • I remain a buyer in this market. The opportunities to swing short are far too unpredictable, choosing to focus on the long side is the best way to manage risk and maximize profits at this juncture. 
  • With the consolidation at the highs, I think it is only a matter of time before we break the 1700 price level .
  • This uptrend looks nearly the same as the one we saw on 4/19 and lasted until 5/19. I'm curious if it will lead to a similar extended pullback as a result. 
  • 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:

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