The S&P futures are stuck in neutral right now despite better than expected housing and consumer confidence data this morning. The positive splash of data is being countered by the U.S. government announcing that the economy is worse than they anticipated earlier this year. The negative psychological message is capping gains in the S&P. Economists continue to debate the longevity of the global economic recovery. Regardless, global economic data continues to outperform for the most part with EU and British reports eclipsing analyst expectations, including today's BBA Mortgage Approvals.
The news-wire is going to heat up as the week progresses. Tomorrow the U.S. will release Durable Goods Orders and New Home Sales along with the EU's German Ifo Business Climate. Thursday will be the busiest session with America's Prelim GDP number leading the headlines. Meanwhile, the S&P futures are creating some space between price and their highly psychological 1000 level, a key development in our eyes. Additionally, crude futures are creeping beyond $70/bbl with their 2009 highs in sight. However, the GBP/USD and EUR/USD have failed to break free of their downtrend pressures while gold gravitates around $950/oz. Hence, the S&P's correlations aren't participating to the topside as one would hope.
Regardless, there's little technical/fundamental reason to question the S&P's upward trajectory right now. Perhaps the Dollar is starting to appreciate with good U.S. economic news as opposed to the other way around, it's just too early to determine. However, the response to this week's data should give us a better idea of where the markets are headed for the near-term. If U.S. economic data outperforms on Wednesday and Thursday, we could witness explosive movements to the topside. As for the downside, the S&P futures have their intraday lows and our 1st tier uptrend line to fall back on.
Resistances: 1032.75, 1038
Supports: 1026.25, 1020.75, 1018, 1010.75, 1004