Pre-market update (updated 9:00am eastern):
- Europe is trading 0.5% higher.
- Asian markets traded 0.3% higher.
- US futures are flat.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45am), Durable Goods Orders (8:30am), Bernanke Speaks (8:30am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Consumer Confidence (10am), FHFA House Price Index (10am), Richmond Fed Manufacturing Index (10am)
Technical Outlook (SPX):
- The S&P 500 finally cooled off some yesterday after five straight days of rallying hard.
- Despite the gap down, the markets rallied off of the early morning lows.
- We also managed to hold the breakout level of the downtrend off of the 10/18 highs.
- But we have yet to clear the resistance level at 1410.
- SPX remains well overbought on the short-term time frame. On the long-term time frame, SPX is no longer oversold, like it had been prior to last week.
- SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
- After 1410, look for the next level of resistance to kick in around 1437.
- Volume returned back to normal levels after experiencing weak holiday trading the week before.
- Despite the strong rally of late, the SPX failed to make a higher-high. As a result, I’d view this market with skepticism, until proven otherwise.
- SPX currently has recaptured the 10, 20, and 200-day moving averages.
- 30-minute chart shows nice consolidation at the highs.
- VIX remains at 15.
My Opinions & Trades:
- Sold PHG at $25.82 from $25.41 for a 1.61% gain.
- Shorted KORS at $50.83 yesterday.
- Here is my real-time swing-trading portfolio and past-performance
Chart for SPX: