The bulls remain in complete control of this trade. The technicals have been telling us that this market wants to go higher but the news in Europe was weighing on this market. Well…..not anymore. If there was real concern in Europe the market would not have been rallying the past few weeks it would have been breaking. Now that there is good news out of Europe colliding with strong technicals…..the bulls are in complete control of this trade. Today the Dow is poised to open back above their 200 day m.a. (11,968) and above they psychological 12,000 (great news for the bulls), the Nasdaq is now flirting with their monthly highs at 2388.50 and if they can get above that area the next stop could be testing their high of the year at 2435.50. The S&P cash, futures, and SPY are now back in positive territory for the year and are in striking distance of their 200 day m.a.’s (getting above their 200 day m.a.’s would be very bullish for the market). The Transports who have been the weakest market all year long, are now getting close to their 200 day m.a. at 5,024. If the Transports can close above their 200 day m.a. then I think that the highs of the year could soon be tested by the entire market. Today I will initially waiting to see how we open around support at 1264.00. If we can sustain trade above 1264.00 I will be a buyer and then be looking for us to test the 200 day m.a. in the futures above at 1270.89 where I will be a small seller. If we cannot sustain trade below the 200 day moving average I will then turn buyer and be looking for resistance to be tested at 1282.50 where I will be an aggressive seller. If we cannot sustain trade above 1264.00 I will turn seller and then be looking for us to fill in the single ticks below at 1260.00 – 1260.25 and then possibly fill in the other single ticks from 1246.75 – 1244.75 and test support at the daily pivot (1245.50) where I will be a buyer in this area. Failure to sustain trade above the daily pivot I will turn seller and then be looking for us to test the HVB and fill in the Gap. Support and resistance numbers are really spread out today so I will be keeping it light and tight. Have a great day!
Morning Brief by Anthony Crudele