Gap-Up Start on a Short Week

Markets are at key areas, so let's zoom out a bit.

Technical Edge 

• NYSE Breadth: 73% Upside Volume 

• Advance/Decline: 70% Advance 

• VIX: ~$18

The Nasdaq has been on fire and this morning’s pre-market rally will allow us to exit our longs in CRM (which reports earnings this week) and AMZN. The trading environment has been a stock-pickers market. Can the S&P get more participation to finally make a bigger move? 

• The S&P 500 closed at ~4204 on Friday May 28, 2021. 

• On Friday May 26, 2023, the index closed at 4205.50. 

I know a lot has taken place in the last few years and that only a handful of names have driven a bulk of the gains in the index this year. But when we consider that the S&P 500 is now flat over a two-year period, it emphasizes why stock-picking can be crucial. 

Let’s look at the indices. 

S&P 500 — ES

With the rally on Globex, the ES is going weekly-up over last week’s high of ~4223 after having gone monthly-up over the April high of ~4198 on Friday. However, it’s into a key area of resistance. 

Traders want to know: Will this be a sell-the-news open to the debt ceiling or will the S&P run some buy stops?

• Upside Levels: 4242-4250, 4270, 4295-4300

• Downside levels: 4220-25, 4200, 4175

SPY