Current Long Positions (stop-losses in parentheses):
Current Short Positions (stop-losses in parentheses): None
BIAS: 3% Long
Economic Reports Due Out (Times are EST): None
My Observations and What to Expect:
- Futures are moderately negative heading into the open.
- No major news events scheduled for today.
- Some significant resistance levels overhead for the bulls: 200-day moving average at 1,115. The infamous 1,130 level is the most significant price level for the bulls to break through.
- The 1,107 level on the S&P is very important as well, as it represents the upper-line of the downward channel that began off of the April highs (see one of my recent market wrap-ups for more in-depth explanation).
- Bears need to aim for the 1,080/50-day moving average, and ultimately breaking the ultra-stubborn 1,040 price level.
Actions I Will Be Taking:
- Closed out my short positions on Friday. A no-doubt, disappointing short rally that never truly played out as expected.
- Morning gap play has some solid potential.
- May look to establish a 3-5 day short position off of current overbought conditions.