Pre-market update:
- European markets are trading 0.7% higher.
- Asian markets traded 0.3% lower.
- US futures are trading flat.
MBA Purchase Applications (7), Wholesale Trade (10), EIA Petroleum Status Report (10:30), FOMC Minutes (2)
Technical Outlook (SPX):
- The market has been strong for four solid days and has rallied 47 points from the markets lows.
- Price action is running into a major road block with the underside of the previous uptrend and price level resistance at 1654.
- I think that there is a chance we could pullback for a few days or at least consolidate considering the heavy resistance overhead and how overextended we currently are.
- Short-term SPX is overbought now.
- Volume was much lighter than what we saw on Monday.
- SPY chart is showing a ton of gaps in the chart that have so far gone unfilled - that is something worth keeping a eye out for.
- SPX has finished higher 8 out of the last 10 trading sessions.
- The next task at hand is to break through 1654 or the 6/18 highs, and by doing so, the market would put an official end to the sell-off by establishing a higher-high.
- The one thing you are not seeing that typically accompanies a major market sell-off is continuous bad news coming out. We had the FOMC Statement and that has been it.
- I simply do not think the bears can keep driving this market lower without some form of a catalyst besides the tapering comments made before by the FOMC.
- Markets don't care about the economy. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up.
- Closed BCR at 108.3 for a 0.3% loss.
- Closed BDX at 98.79 for a 0.5% loss.
- Added SJM at 104.63.
- Current Longs:WLP at 80, GOOG at 872.67, VZ at 51.33.
- I'll look to add 1-2 new positions today.
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