Futures Rally as Italian and Greek Fears Subside...GMCR Gaps Lower...

1:00 pm ET - The SPY opened higher and sold off and is bouncing off a slightly higher low than Wednesday's low and is currently in a hammer candle, bullish harami, inside day pattern which of course can change by the end of the day...many stocks are forming similar patterns and setting up potential support bounce entry signals into the five week up trend...




BMO – ES +19.25 and NQ +29.25 futures are higher about 30 minutes before the open in pre-market trading and point to a higher open…volume is moderate for pre-market with more stocks quoting up than down…Financial stocks, XLF is up 21cents on 20,100 shares in pre-market at this time…

On Wednesday Italian bonds fell on debt fears and concerns over wrangling on the next Greek PM spooked markets and ES futures opened down 30 points and held in that area until afternoon.  Then the ES dropped another 13 points to close near the low.

When the markets open 30 points lower this creates a challenge for many traders to decide if they should exit lower than their stops or wait for a rally to their stop level.  A rally after the open did allow many stocks and indexes rally to the low of the previous day before falling to a lower daily low.

As is so often the case with speculative fears, the very next day today, Italian bonds have rallied, the new Greek PM has been agreed on and stocks are rallying to the upside.  If a trader did stop out Wednesday the right thing to do is to immediately look for re-entry on a valid entry signal.

TLT is down -1.42 and the Euro is up 121 pips in overnight trading…

GMCR -19.76, -29.48% following earnings…

NDX leaders AAPL, AMZN, BIDU, GOOG, PCLN and QCOM are quoting higher…

Dave’s Insight for Thursday:  higher Euro…lower bonds…Financials higher…setting up a higher open …the SPX is reversing this morning after Italian bonds find support and a new Greek PM is agreed upon…SPX price target is still 1,363 within the 10 week time window we mentioned when it broke out two weeks ago…use pull backs as new entry opportunities according to your rules…move stops to protect profits also according to your rules…Always follow YOUR rules at entry, exits and stops...

Chart Signals will be watching XLF, TNX and VIX today as key factors in any SPX move…

SPX

Resistance: 1,249, 1,260, 1,273

Support: 1,230, 1,216, 1,205,

Quoting Down – GMCR, TLT, NKE, SOHU, CHL, FWLT, DLTR, ROST, WFM, WCRX,

Quoting Up – PCLN, GOOG, AAPL, BIDU, CMG, FAS, CF, FFIV, CRM, GS, SINA, CAT, DECK, IBM, URE, VMW, WLT, SLB, TIF, MOS, DE, CLF, UCO, DLR, COH, LNKD, MCP, A, C, ANR, FCX, RVBD, HUM, ANF, POT, SNDK, X, ZAGG, LVS, DOW, NVDA, CREE, JNPR, CRUS, TBT, RCL, SWKS, JDSU, CROX, HLF, UAL, GLW, BIDU, FFIV, AMZN, JOYG, WYNN, CSCO, QCOM, FSLR, NIHD, VOD, BRCM, NFLX, FAST, VRTX, COST, SIAL, AKAM, ORCL,NVDE, CTRP, SBUX, ESRX