The S&P futures added onto yesterday's gains as investors dove back into the risk trades. The futures are holding up well today and are presently knocking on the door of previous 2009 highs and the psychological 1100 level. Investor sentiment remains upbeat thus far today since we are not receiving noteworthy data from the U.S. today. Optimism is surrounding the anticipation that global central banks will maintain their respective stimulus and liquidity measures until the economy is back on stable ground. Hence, the Fed's loose monetary policy appears intact for the foreseeable feature, meaning corporate performance should continue to benefit from access to cheap.
Meanwhile, investors won't receive much from the U.S. until Thursday's weekly Unemployment Claims data. Hence, the S&P's immediate-term performance may become increasingly reliant upon movements in the Dollar. Since the U.S. will be taking a timeout from data, focus will shift to the Far East. China will be printing a wave of data late Tuesday EST, including Industrial Production, CPI, PPI, and Fixed Asset Investment. Any outperformance in China's econ data could help fuel a S&P retest of 1100.
Technically speaking, although the S&P futures have darted beyond our downtrend line, they still have to deal with previous 2009 highs and the psychological 1100 level. Therefore, a couple key topside technicals do remain before the S&P has the opportunity to experience a more protracted breakout. As for the downside, the S&P futures have multiple uptrend lines service as technical cushions now along with 11/06, 11/05, and 11/03 lows. Furthermore, the psychological 1050 level should service as a reliable support should it be tested.
Resistances: 1094.5, 1098.75, 1100
Supports: 1086, 1076.75, 1071.25, 1062.5, 1056.5, 1053
Psychological: 1100, 2009 Highs, 1050