Futures Point to a Lower Open...Watch Tuesday's S1 Level...

BMO – ES -3.25 and NQ -4.50 futures are lower in pre-market trading pointing to a lower open. AAPL -0.16, AMZN -0.00, GOOG -1.32 and BIDU -5.84 are lower in pre-market trading. The Euro is down 145 pips in overnight trading creating a short term reversal in the dollar. Oil is down 1.00 in electronic trading. XLE is down 45 cents in pre-market trading. SPY is down 36 cents in pre-market trading. XLF is up 7 cents in pre-market trading. Continue to watch XLF as a key to sustain the breakout in the SPX which it is not doing this morning. There is still a 1,234 chart target for the end of January. Without a strong positive reaction to earnings this week and next we don’t see this target being achieved by the end of January as we stated in Friday’s post. Remember direction and price target are more important than time. We may be seeing those signals for a potential pull back this morning. Follow your rules in any trading actions today. Be logical. Watch for consolidation this morning and the S1 level of Tuesday’s large white candle. Financials are up. IBM is -$1.85 in pre-market trading less than Tuesday’s gain and CREE is +$6.89 or +12.71% in pre-market trading. Wednesday Key Earnings to Watch: AMR, BAC, COH, EBAY, LOGI, MS, NTRS, STX, SBUX, STT, USB, WFC, XLNX SPX Support = 1,125 – 1,133, 1,106 - 1,117 Resistance = 1,145, 1,155, 1,170 Trading Down: INFY, AMZN, CAT, TSL Trading Up: X, POT, AAPL, BUCY, AGU Look at these Charts… (click image to enlarge) At the Open on Wednesday SPY – QQQQ – FAS – AA – SHLD – X – AAPL – AKAM – AMZN – CREE – NVDA – RIMM – SNDK – BUCY – DECK – FWLT – ISRG – PCLN – UAUA – ACN – AGU – AMD – CAT – DE – DOW – MA – PCP – POT – UNP – WHR –