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Economic Reports Due out (Times are EST): GDP (8:30am), Employment Cost Index (8:30am), Consumer Sentiment (9:55am)

Premarket Update (Updated 9:00am eastern):

  • US futures are mixed/flat ahead of the bell. 
  • Asian markets traded 0.5% lower.
  • European markets are trading 0.5% higher.

Technical Outlook (S&P):

  • Yesterday’s continuation rally changed the character of the market to bullish by breaking out of the range the S&P had been trading at. 
  • Breaking 1392 ended the range-bound market. 
  • Now the bulls need to make sure that any weakness that may come there way doesn’t cause them to fall back below 1392. 
  • Ultimately the bulls need to push back above 1401 and ultimately break 1422 which is previous recovery highs. 
  • The previous trend-line off of the October lows has become resistance for price action on the underside. 
  • On the weekly chart, we confirmed the bearish wedge pattern that we had been following for weeks. Very bearish development for the market. 
  • We now only have 1 gap remaining from 3/6 to be filled, not counting the huge gap from Wednesday. 

My Opinions:

  • Breaking 1392 was a big deal and drastically reduces the reasons to be short in this market.
  • Covered RL yesterday at $171.10 for a -1.7% loss. 
  • Bought CLX at $70.19 and LIZ at $13.40
  • I am bullish on this market after breaking out of the short-term range. 

Chart:

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