Before the Open (Feb 22)

Good morning. Happy Monday. I hope you had a nice weekend.
The Asian/Pacific markets started the week closing mostly up (only China lost ground, and there were several 1% gainers). Europe is currently mixed. Futures here in the States point towards a moderate gap up open for the cash market. This comes off a week the indexes rallied very nicely and took out resistance levels from two weeks prior.
Two weeks ago everyone was predicting the end of the uptrend and beginning of a new leg down. I was open to the idea (I don’t care what way the market goes), but with several internal breadth indicators being at oversold levels, I was looking for a bounce, and bounce is exactly what we got. Now many of those same indicators are in overbought territory, and considering the winning streaks (the Russell is up 9 of 10 days for example), the risk/reward for entering new longs isn’t good up here.
Early last week I identified 1100 (on the 30-min chart) and 1105 (on the 15-min chart) as S&P resistance. Both levels have been taken out. The next target is 1130, but I’d like the market to rest before surging higher.


Be careful out there.
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today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers