Futures Point to a Higher Open...Potential Double Bottom, Bullish Divergence Still in Place

BMO – ES +11.25 and NQ +19.50 futures are higher about 80 minutes before the open in pre-market trading and point to a higher open…volume is light for pre-market with many more stocks quoting up than down…Financial stocks, XLF is up 19 cents on 86,700 volume in pre-market…

TLT is down 1.13 cents and the Euro is up 101 pips in premarket trading…this combo is bullish...

NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX, PCLN and QCOM are quoting higher in pre-market trading…

Dave’s Insight for Tuesday:  It will be interesting to see if today’s bounce holds…Monday’s lighter volume on the gap up fade was bullish…Follow your rules for divergence, double bottom or higher low trades…position size for market conditions and remember premiums are high and selling strategies may be attractive…remember gaps have a tendency to at least partially fill sometime in the first hour…Posture could turn bullish today, Green Line is still above 20 and on a reversal could turn back up…Follow your rules for entries this morning for bullish and bearish trades… A good technical trader is objective and trade each chart according to their rules…Watch XLF which is still a key factor in any SPX move up or down…

SPX

Resistance: 1,134, 1,146, 1,158

Support: 1,119, 1,103, 1,080

Quoting Down – FAZ, TLT, SRCL, ERTS, BBBY, WYNN, ORLY, FSLR, TSL, SLW, MHS

Quoting Up – PCLN, GOOG, AAPL, SHLD, CMG, NFLX, AMZN, BIDU, WFM, SINA, CRM, VMW, CLF, CF, CAT, WDC, ATI, SLB, DE, FFIV, WLT, MCP, GS, CAM, MOS, HUM, COH, LVS, UCO, SWK, FCX, POT, CHR, ANR, SWN, FAS, CAN, TBT, HLF, C, JNPR, ANF, NGLS, ARUN, X, DOW, NKE, SOHU, ICEN, NVDA, PCX, FFIV, CHKP, COST, DTV, SBUX, ADSK, ALTR, SIAL, CELG, INFY, BIIB, QCOM, INTU, JOYG, CTSH, RIMM, VOD, NIHD, APOL, XRAY, KLAC, BMC, ORCL, TEVA