The Bull Train Keeps on Rockin'

Take bits of profit on the way up and stick to the trend.

Technical Edge — 

• NYSE Breadth: 63% Upside Volume 

• Advance/Decline: 62% Advance 

• VIX: ~$17

BAC, GS, LMT (trade update below) and JNJ all report earnings in the morning. The banks probably won’t tell us anything we don’t know already. But more color on the banking situation and the economy should shed some light on the reality here in the US. 

The early day weakness in the S&P didn’t give us the setup we were looking for. That said, it’s possible we get that setup again today (annotations for setup on chart below). Let’s look. 

S&P 500 — ES 

• Upside Levels: 4172-78, 4190, 4200, 4217-25

• Downside levels: 4142.50 (March high) + 10-day, 4115, 4095-4100

SPY