Futures Point to a Lower Open and a Test of Tuesday's Breakout...

BMO – ES -5.00 and NQ -6.00 futures are lower in pre-market trading pointing to a lower open. In pre-market trading AAPL is -0.99, GOOG -1.99, BIDU -0.99, NFLX -1.41.


Bonds are higher and TLT is up 83 cents in pre-market trading.

The Euro is down 47 pips in overnight trading and finding some sellers at its 30 DMA.

SPY is is down 80 cents and XLF is down 12 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Futures are pulling back after Tuesday's large move. A test of a breakout is more likely than not. We will look for the depth of the pull back. The 1,103 to 1,105, the S1 level of Tuesday's large white candle and the old horizontal resistance level, is the nearest short support level and a likely pull back target.

If the breakout holds the new chart target is 1,170 in approximately four weeks.

The VIX closed just above 25 on Tuesday. If this breakout is going to continue look for a drop below 25 and a close below that level.

Stocks are lower on light volume in pre-market trading. When the cash market opens both a modest pull back and lighter volume would be positive for the breakout.

If the breakout holds, the pull back testing the breakout is an entry opportunity.

Trading Down: DECK, POT, CRM, NFLX, BUCY, FCX, URE, V, CREE, DE, WLT, UNP, CHL, X, CLF, MOS, MA, AN, CAT, GS, SWN, FAS, BA, SWK, SNDK, DOW, WHR, MCD, USO, LVS, GME, WMT, TSL, GMCR

Trading Up: PCLN, ESI, CSTR, FAZ

The short term 3 day trend is up. The intermediate term trend is neutral and long term trend is up.

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

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

SPX
Support = 1,103, 1,081, 1,071
Resistance = 1,124

At the Open on Wednesday
SPY –
QQQQ -
FAS -
TLT
HSY –
UNG –

BIDU -
SNDK -
DECK -
CMG -
BIDU -
ILMN –
UAUA -
CAL –
GOOG –

NFLX –
AKAM -
DTV -
VMW –
CRM -
ALK -
AAPL –
ORLY –
AAP -
SWN –
AZO -
LVS –
ICE –

AKS
X -
PCLN -
CLF –
DOW –
BBY –
MA -
V –
CAT –
PCP –
UNP –
FCX –
GMCR –