Wednesday, May 5, 2010

Futures Point to a Lower Open...

BMO – ES -7.50 and NQ -10.75 futures are lower in pre-market trading pointing to a lower open. In pre-market trading AAPL is -1.29, AMZN -0.73, BIDU +0.50, INTC is down 17 cents, BAC down 13 cents and GS -0.28.

On Tuesday the consolidation pattern on the SPX broke through its 1,178 support area. It would be typical to see a technical bounce. If a bounce does occur the strength of that bounce is important.

Does it break above 1,178? If not, be prepared for more downside. If it does break 1,178, does it make it back to 1,200 the next resistance level? If, not then expect a second pull back of some magnitude. We will watch any bounce if it does occur and keep you posted on our view.

Continue to focus on the short term down trend until a bounce begins to materialize.

Bonds are higher and TLT is 32 cents higher in pre-market moving above Tuesday's high.

Most stocks are quoting lower so look for the open to test Tuesday's lows.
ICE +6.24, +5.51% reports $1.36 EPS vs $1.31 estimate.
IPI reports 16 cents vs. 15 cents estimate

Trading Down: MYGN, BUCY, CREE, FCX, GEX, ,AGU, MHS, X, USO, POT, CLF, NFLX, SNDK, UYG, GS, URE, CAT, UAUA, SWN
Trading Up: ICE, IPI, HLF, PCP, CHL, OSTK, FAZ

Look at these Charts
(click image to enlarge)

The short term is down and the intermediate term and long term trends are up.

Trade those charts that meet your rules in the direction of the trend.

The Euro is down 40 pips and is making a new one year low in overnight trading.  Oil is down another $1.45 in electronic trading. 

SPY is down 62 cents and XLF is down 15 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today.  Be logical.

SPX
Support = 1,155, 1,145
Resistance = 1,178, 1,200

At the Open on Wednesday
SPY –
QQQQ –
FAS –
TLT -
MA -
NTRI -
OSTK -
EXBD -
ILMN – flag
AKAM – flag
DOW –
BBY –
SNDK – flag
AAPL – flag
SHLD – flag
NFLX – flag
BA – flag
WHR – flag
ZION – flag
DHR – flag
V –
PCLN – flag
DECK – flag
CAT –
PCP – EPS this week
X –
CREE –
AMD –
UAUA – merger announced
UNP –
CLF –
DE –
FCX –
GMCR –

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