Earnings & Inflation Report a Real Test for the S&P

Technical Edge — 

• NYSE Breadth: 43% Upside Volume

• NASDAQ Breadth: 49% Upside Volume

• VIX: ~$26.25

Game Plan: S&P 500, Nasdaq, Oil, XLE 

Last week was a great start to Q3 and we were able to cash in on some nice setups. Now the market faces a real test with the CPI report on Wednesday and earnings later this week. 

After a great start to the first half of July, we’re in no rush to start the week. Let the S&P tell us where the path of least resistance is. 

S&P 500 — ES 

On Friday, our upside levels included: “3920, last week’s high at 3950, the 50-day moving average near 3970 to 3975 and finally, the 61.8% at 3987.”

We only got the first target, at 3920. Now tiptoeing around Friday’s range, how this goes from here will be key. 

If the ES can hold the 3860s as support (the 10-day, Globex low and Friday’s low), then bulls may make another push back to 3900. 

Above 3900 puts…