Futures Continue Pull-In After GDP Number

January 27, 2012 Scott Redler

US stock futures point lower this morning after the GDP number came in a little light. There are also some overseas rumblings is pressuring the futures this morning.

Yesterday was a great day to take some profits as we had a “technical sell signal”. This occurs when you push through a defined high and come back below. Combine that with Wednesday “capitulation” buying or short covering and it made it a prudent day to take a step back and limit some risk.

SPY level to watch is yesterday’s low of $131.36, which we are opening below. A 30-60 minute close below this and we should get more downside.

A short term important level in my opinion is $130.60-$130.80 SPY, which is the five-day support. A daily close below this level and the accelerated uptrend will be breached. This would have momentum traders probably looking for more shorts and less risk (S&P 1305-$1308). I think $128.80-129.20 will be a more compelling spot.

Tons of push through failures in a lot of stocks, so same thoughts as the SPY.

Disclosures: Scott Redler is long SPY, OIH, WMT, LULU, X, GOOG, WYNN, GERN, KV.a, VXX. Short DIA, LVS.

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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