Futures Point to a Higher Open...

BMO – ES +10.00 and NQ +16.50 futures are up about two hours before the market open pointing to a higher open. AAPL +1.58, AMZN +0.70, GOOG +3.54 and BIDU +2.27 are higher in pre-market trading. Last night is speaking with more than 600 traders there seems to be only about 20% who thought Monday’s price was more bullish that Friday’s price action. Monday was a lower close but made a higher high and higher low. Generally higher highs and lows lead to a short term rally. With the SPX hitting a significant support level at 1,044 and institutions creating a 22 point rally in two hours, that seems to be pretty significant technical evidence that there is buying power around this level. Again I refer you to Friday’s post on the June 8, 2006 hammer as a similar dramatic pull back over four weeks and the buyers creating a similar rally at a support level. Often when so many traders have turned bearish that is when the market finds at least a short term support because everyone that is going to sell has sold. That’s certainly the way 2006 was. We’ll see. Just stay prepared to trade in the down or up based on the technical action. The Euro is up 75 pips in overnight trading. Oil is up 35 cents in electronic trading. Continue to watch XLF as a key to a support bounce rally in the SPX as it is doing this morning. Follow your rules in any trading actions today. Be logical. SPX Support = 1,050 – 1,044 Resistance = 1,071, 1,079 Trading Down: Trading Up: AAPL, FAS, SPG, USO Look at these Charts… (click image to enlarge) At the Open on Tuesday SPY – QQQQ – FAS – BA – ALTR – GMCR – ALGT – SHLD – CREE – STX – ZION – STT – NTRS – DECK – ISRG – BAC – INFY – X – AAPL – AKAM – AMZN – NVDA – SNDK – BUCY – PCLN – UAUA – ACN – AGU – DE – DOW – DHR – MA – PCP – POT –