Futures Point to a Higher Open and a Potential Break Above the High of the Low Day...

BMO – ES +15.00 and NQ +30.00 futures are higher in pre-market trading pointing to a higher open. In pre-market trading AAPL is +2.97, GOOG +5.22, BIDU +1.54, NFLX +3.17.


With less than a week to go before earnings season begins, stocks in Europe gain more than 2%. Following the European rally, US stock futures are trading higher in pre-market trading.

Bonds are flat and TLT is up 2 cents in pre-market trading.

The Euro is up 52 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 up 1.21 and XLF is up 19 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 the past 10 days. The SPX is still in an intermediate term sideways trend over the past 8 months, congestion or consolidation with price at support.

Look for support bounce confirmation on the many charts which had 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 Tuesday: 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.
Watch the VIX level on Tuesday 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: FAZ

Trading Up: NFLX, CMG, WLT, GS, MA, FCX, CLF, CREE, BUCY, HSY, CAT, DE, X, POT, DECK, BA, VECO, MOS, V. SKX, VMW, URE, SNDK, JEC, SPG, USD, LVS, CRUS, UAUA, FAS, AGU, DOW, GMCR, TSL, HAS, FFIV, USO, WHR, STI, ATW, WMT, USO, NTRI, NYX, CSTR, BAC, AMD, UNG, DLR, HLF, CAM, DHR, TIE, UCO

The short term 3 day trend is down and could reverse this morning if pre-market trading levels hold once regular trading opens. 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 = 1,010, 1,010
Resistance = 1,040 1,056

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

AAPL – flag
CRUS – flag
BRCM - flag
BIDU –
AKAM – flag
SNDK – flag
NTAP - flag
ILMN – flag
NFLX – flag
FFIV – flag
DECK - flag
CMG – flag
VMW – flag
ALK – flag
UAUA - flag
CAL – flag
SKX – flag
AZO – flag
LVS –flag
HSY – flag
DLR - flag
CRM – flag
TIE – flag
UNG – flag
UCO - flag
AAP – flag
SWN – flag
ICE – flag
BA – flag
CAT – flag

ORLY –
CSTR -
NETL –
NYX –
GMCR –
VECO –
CREE –

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