Before the Open (Jul 22)

Good morning. Happy Thursday.
The Asian/Pacific markets closed mixed and without any noticeable movers. Europe is currently up across the board – almost every market is up at least 1%. Futures here in the States point towards a big gap up open for the cash market.
The market was doing ok yesterday until Bernanke started to speak. His words directly led to a stiff 60-min sell-off before the market flat-lined into the close. In yesterday’s PM Obs I threw out the possibility the selling was nothing more than a knee-jerk reaction and prices would be recovered. This is exactly what is happening right now. As of today’s open, assuming the futures don’t move much, the market will open near the bottom of yesterday’s early day range. If the level holds, yesterday’s brief selling won’t look much different than a typical post-FOMC move…knee-jerk reaction in the near term but no lasting effect.
Here’s the SPX falling wedge on the weekly chart. Two relatively small candles that bump up against resistance sets the stage for a breakout.

And here’s the 30-min again. Resistance is in the 1090-1100 area, and on any move down, I’d like to see 1060 hold.

More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers

0 thoughts on “Before the Open (Jul 22)

  1. Hi Gang!
    I think we will re-visit the $S&P area of 1100
    maybe by today or tomorrow, and then that will
    represent a triple top. So then it’s every man
    for himself regarding the near term future
    as to a follow through on the upside. HW

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