Pulling Back Into Fed, Big-Tech Earnings

Wednesday-Friday is loaded with key info.

Technical Edge — 

• NYSE Breadth: 27% Upside Volume 

• Advance/Decline: 31% Advance 

• VIX: ~$20.50

Are we shifting into a risk-off mindset with the S&P weekly charts near resistance and with the Fed and big-tech earnings on tap? It feels that way with Friday’s late-day action and Monday’s decline. 

That said, Monday and Tuesday are small potatoes compared to the Fed on Wednesday, Big Tech on Thursday and the jobs report on Friday. 

S&P 500 — ES

There was some follow-through on Monday’s selling into the overnight session, but the /ES is finding support near the 10-day moving average. 

Going into today, watch yesterday’s low near 4030. Back above that mark puts 4045 in play, then 4050, 4063 and finally 4075-78. 

On the flip side, keep 4007, then 4000 in mind. If the S&P ultimately breaks below 3994 — the 78.6% retracement of last week’s range — it opens the door down to the 3960s. 

SPX

SPX Index

Yesterday we looked at the weekly setup for the S&P futures. Sometimes I like to take away all indicators, measures, etc. and just look at the action. I say, “where has price been? Where is it going?”

We have a higher low to work with near 3800. But we also have clear resistance at 4100. 

On the downside, we can also use 3950 as a pivot. That’s last week’s low. 

SPY