Pre-market update (updated 8:30am eastern):
- European markets are trading -0.2% lower.
- Asian markets finished mixed but overall -0.3% lower.
- US futures are trading slightly higher ahead of the bell.
Economic reports due out (all times are eastern): Consumer Credit (3pm)
Technical Outlook (SPX):
- We got a pullback yesterday, that after two huge days of cumulative gains.
- Friday’s action was completely outside of the upper Bollinger band (2 std devs), which is highly unusual for the markets, and usually follows with a pullback.
- Yesterday’s sell-off puts us back inside that upper Bollinger band which is where we should be trading.
- If we continue to pullback today, look for some dip buying opportunities around 1419.
- We are overbought as of yesterday’s close.
- Volume has declined slightly over the past two trading sessions.
- Test at 1440 resistance is in play today. While there isn’t a lot of resistance overhead, this is a minor resistance level worth noting.
- The 10-day moving average is back above the 20-day moving average.
- SharePlanner Reversal Indicator shows a bearish divergence which is worth noting.
- FOMC Statement occurs on an unusual Thursday at 12:30pm est (typically Tuesday or Wednesday).
- Long-term uptrend support off of the 6/4 lows now shows support at 1396.
- 30-min chart shows a nice uptrend now in place with higher-highs and higher-lows.
- VIX surged yesterday and now back above 16.
- One area of concern is the 3 large gaps off of the 6/4 lows that remain unfilled, including 6/6, 7/26, 8/3
- If another sell-off were to ensue, watch for a break and close below 1396 for a new lower-low in the market.
My Opinions & Trades:
- Number of trades taken yesterday.
- Closed AMZN at $257.20 from $233.90 (7/27) for a 10% gain.
- Day-traded MCP yesterday: sold at $12.05 from $12.48 for a -3.45% loss.
- Bought ALXA at $4.83
- Looking to add 1-2 new positions today.
- Current stop-losses have been adjusted across the board.
- ALXN stop-loss moved up to $107.50
- CROX stop-loss moved up to $17.75
- Stop-loss for FBHS at $25.60.
- Remain long CROX at $17.39, V at $127.18, FBHS at $24.54, and ALXN at $102.53
- Track my portfolio RealTime here.
Charts:
