Pre-market update (updated 8:30am eastern):
- European markets are trading mixed but 0.3% higher. .
- Asian markets finished 1.4% higher.
- US futures are trading moderately higher ahead of the bell.
Economic reports due out (all times are eastern): FOMC Meeting Begins, MBA Purchase Applications (7am), Import and Export Prices (8:30am), Wholesale Trade (10am), EIA Petroleum Status Report (10:30am)
Technical Outlook (SPX):
- Nice recovery yesterday after the previous day’s sell-off.
- Creates somewhat of a mini bull-flag pattern on the daily SPX.
- Volume seems to be picking up ‘some’ as we head into the final stretch of Q3 and into Q4.
- Upward trend-line off of the 6/4 lows has rising support at 1400.
- Near-term resistance is at 1437. Additional Buying power should flow in once we break that level.
- If we pullback today, look for some dip buying opportunities around 1419.
- We are overbought as of yesterday’s close.
- 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.
- 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).
- 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:
- Took a long position in CRR at $72.27.
- Bought QIHU at $24.00
- Sold ALXA at $4.84 from $4.83 for a 0.2% gain.
- Sold CROX at $18.22 from $17.39 for a 4.8% gain.
- Looking to add 1-2 new positions today. May be open to 1 short hedge as well.
- Current stop-losses have been adjusted across the board.
- ALXN stop-loss moved up to $108.00
- Stop-loss for FBHS at $25.70.
- Stop-Loss for V at $125.85
- Remain long V at $127.18, FBHS at $24.54, and ALXN at $102.53
- Track my portfolio RealTime here.
Charts:
