The S&P futures are recovering from earlier losses after dipping below our important 1st tier uptrend line. Today's slight bounce in the S&P futures comes despite a surprisingly negative CB Consumer Confidence release. Today's CB data reflects the negative consumer sentiment portrayed by recent UoM numbers. Therefore, today's slight strength in the S&P futures is likely due to a combination of oversold conditions as well as the recognized importance of present levels. We've highlighted our 1st tier uptrend line in previous commentaries since it runs through October lows. The fact our 1st tier has already been compromised once is a bit discouraging since it implies a potential retracement towards these October lows and the psychological 1000 level. However, our 1st tier uptrend line is still intact nonetheless, meaning the S&P's uptrend can kick back in should techincals hold and tomorrow's econ data registers better than today's.

Tomorrow the U.S. will release DGO and New Home Sales data. DGO data is heavily weighted since it is a primary economic indicator in regards to the health of U.S. consumption. Unfortunately, considering recent CB and UoM data, the outlook for tomorrow's DGO numbers is turning a bit sour. In addition to DGO data, investors are expecting a slight uptick in New Home Sales. New Home Sales have been dragging behind Existing Home Sales, so an outperformance in tomorrow's release could give a solid, positive boost to equities and the outlook for the U.S. housing market as a whole.

Meanwhile, the behavior in the S&P's correlations is reflecting the uneasiness in U.S. markets. The EUR/USD registered sizable losses yesterday, and has fallen well below its psychological 1.50 level in the process. Furthermore, gold and the Cable aren't faring too much better while a downward force tries to gain control. However, a few near-term uptrend technicals are still in place, leaving the S&P's path in the hands of upcoming econ data releases. Therefore, investors should tread cautiously and closely monitor the S&P's reaction to econ data and interaction with our 1st tier uptrend line.

Price: 1065

Resistances: 1070.5, 1076, 1082.25, 1088.75, 1094.5

Supports: 1063.25, 1056.25, 1048, 1039.75

Psychological: 1100, 1075, 1050