Early am gains in Europe along with solid earnings out of C, UNH have propelled US futures higher yet again,, with prices now at the upper border of resistance from 2800 stretching up to a max near 2815. Bonds are fractionally higher on the long end (2 yr yields holding up. So Yield curve flattening) while not much volatility in either WTI crude, nor Gold. Bitcoin this am is down over 2k, UNDER 12k, or down 15%
Europe making a bullish move above former highs, but should be noted, this still hasn’t gotten above last November highs, nor last May.. so this still has quite a bit of work to do to join the strength seen in US. As I wrote in my Weekly Technical Perspective this am. My thinking is that a turn in stocks back lower should happen this week or next week.. with the potential of the next few days.. so I view the risk/reward as poor in the short run.. based on a combination of Cycles, sentiment and Demark exhaustion which is now present among several different indices and many sectors as of this week. After having been bullish for the last couple months, it looks like prices are at levels where its right to consider paring back longs, taking at least partial profits and/or hedging gains. Markets are clearly in a parabolic phase, and momentum has been strong, despite breadth coming in weaker than expected on this surge from late Dec. So important to watch markets carefully as indices are capable and likely of erasing gains equially as quickly, if not more quickly than they occurred, when this starts to turn lower. But for S&P, the areas specifically from 2800-9 looks significant.
As for areas on the downside if when breached , would turn near-term trends negative. The first area lies near yesterday’s electronic session lows near 2790. Breaking this would violate the 5 day trading) trend, which in of itself has seen prices advance more than 40 S&P points. Look to sell into 2805 and above near 2809-11
Premkt gainers: HAEK, CATS, SRNE, OSIS, OCUL, DNR, MRK, LVS, GM, CRC, WYNN, FCEL, C, PLUG, MGM, while on the downside- EIGR, DPW, KODK, GROW, RIOT, LFIN, CNET, TEUM, OSTK, TSRO, GE, FNSR, VIAB, MGI. Let me know if you have any questions