Pre-market update:
- Asian markets traded 0.5% higher.
- European markets are trading 0.3% lower.
- US futures are trading 0.1% lower ahead of the market open.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Redbook (8:55)
Technical Outlook (SPX):
- Excellent follow through on Friday's bounce.
- Challenged, broke and closed above the pivotal 1883 price level.
- I expect a push into the 1890's and another attempt to close above 1900 to be forthcoming.
- At all costs, bulls have to make sure that no sell-off results in a close below 1862.
- There is a short-term rising trend-line off of the 4/28 lows. This needs to hold as well at 1871.
- Volume was non-existent... but frankly that seems to always be the case on up days.
- VIX remains at 12.42.
- Bears have shown that despite having favorable market conditions time and time again, that they simply cannot push this market lower over a long period of time.
- Major milestones like 1900 can often lead to profit-taking as it represents a predefined/psychological level where investors decide to book their gains.
- Small caps continue to be the market's weak spot.
- The market doesn't care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up.
My Opinions & Trades:
- Closed out AAL (NASDAQ:AAL) at 38.59 for a 1.9% gain yesterday.
- Bought one additional long position yesterday.
- Will look to add 1-2 new long positions today.
- Remain long GPK (NYSE:GPK) at 10.57, EMC (NYSE:EMC) at 25.79, GLW (NYSE:GLW) at 20.95, LVS (NYSE:LVS)at 73.16.
- 50% Long / 50% Cash
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
