Futures Point to a Flat Open...

BMO – ES -2.50 and NQ -1.75 futures are slightly lower in pre-market trading pointing to a flat to slightly lower open. In pre-market trading AAPL is +0.34, GOOG -0.12, BIDU -0.24, NFLX +0.04.


Most stocks are near unchanged on very light volume in pre-market trading this morning.

Earnings season starts next Monday. Tuesday's pre-market rally and gap at the open filled by the end of trading with the SPX up 5 points. The SPX formed a higher high and higher low doji which did not confirm Thursday's hammer at the close.

Bonds are flat and TLT is up 7 cents in pre-market trading.

The Euro is down 60 pips in overnight trading and above its 10 and 30 DMA. The Euro appears to have started a new up trend with a breakout of an inverse head and shoulders.

SPY is down 20 cents and XLF is up 5 cents in pre-market trading . Watch XLF as a key to any sustained move in the SPX.

Short term resistance is at 1,040 and 1,056.  Short term support is at 1,010 and the next lower horizontal support at 1,000.

After Thursday's hammer, trader's should be prepared for bounce confirmation. Follow your rules for potential enter and exits and trade the charts you are trading following the principles of trend, support and resistance and momentum.

This pull back, which held on Thursday at the 38.2% Fib retracement from the March 2009 low is poised for a technical rebound after falling for 10 days. The SPX is still in an intermediate term sideways trend over the past 8 months, congestion or consolidation with price at support and in a two month down trend.

Look for support bounce confirmation on the many charts which have bullish candle patterns on Thursday. Remember the entry on a flag or other support bounce patterns is a break above the high of the low day...so watch for a potential entry signal today...

All those flags we have been posting over the past week, look for a potential break above the high of the low day on Wednesday: NFLX, AKAM, SNDK, SBUX, VMW, UAUA, FFIV, ILMN, CRUS, LVS, BA, CAL, CAT, CRM, HAS, HSY, NYX, SWN, TIE, UNG, UCO, BIDU, NTAP, VECO, SKX, DECK, CMG, ICE, NETL, AAP, ALK, AZO, ABC and DLR.

FFIV and HSY had support bounces on Tuesday.

Watch the VIX level on Wednesday to see if it pulls back or rises in confirmation of price movement. The VIX has been suggesting support bounce in its lower close on both Thursday and Friday.

Stocks are higher on moderate volume in pre-market trading.

Trading Down: X, NFLX, BUCY, SKX, FCX, AKS

Trading Up: BA, VMW, CRUS, DOW, WLT, SNDK, URE, UNG

The short term 3 day trend is neutral. The intermediate term 8 month 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 = 1,010, 1,010
Resistance = 1,040 1,056

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

AAPL – sideways at support
CRUS – flag entry
BRCM - flag
BIDU – sideways at support
AKAM – flag
SNDK –
NTAP - flag
ILMN – flag
NFLX – flag
FFIV – flag entry
DECK – stock split
CMG – flag
VMW – bounce entry
SKX –
AZO – flag
LVS –flag
HSY – flag entry
DLR - flag
CRM – flag
TIE – flag
UNG – flag
UCO -
AAP – flag
SWN – flag
ICE –
BA – flag
CAT – flag

ALK –
UAUA -
CAL –
ORLY –
CSTR -
NETL –
NYX –
GMCR –
VECO –
CREE -

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