Before the Open (Jun 21)

Good morning. Happy Monday. Hope you had a nice weekend.
The world is green. The Asian/Pacific markets closed up across the board – there were many > 1% winners. Europe is posting solid gains. Futures here in the States point towards a big gap up open for the cash market. Today’s open will be at a 5-week high.
The big news is that China said it will allow its currency to appreciate against the dollar. This will help US manufacturers sell products in China and will help reduce the threat of inflation in China, so rates won’t need to be raised (at least for now).
Here’s the S&P 60-min chart…double bottom, and now we’re going to get a gap above resistance which was established last week. I’m not a big fan of gap ups within uptrends – I’d prefer a flat or weakish open and some early weakness before buyers step in. Oh well. It is what it is.

And here’s the weekly I’ve been posting the last two weeks. A resistance line has been taken out, and the bottom Bollinger Band is starting to curl up.

Trade what happens, not what you think should happen. The market has absorbed a great deal of bad news lately, and it held its previous low. Good news is good, and no news is good. The short term trend is up (has been up). That’s the way you should be playing things right now.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers