Stock futures point to a slightly higher open Tuesday morning following the long holiday weekend in the US. After a weekend of banter in Europe, the parties finally got a satisfactory deal done in Greece that will prevent a default on March 20. China also announced monetary easing plans.
Sunday night the futures were up 8+ handles, but have been fading each day. Right now they are up small. Traders were probably looking to see if they can “fade” or sell the “excitement” of the deal. Not much excitement this morning to sell as we are flattish.
Technically, it would be constructive to do some work over the recent highs of 1353-1355 before trying to take out last year’s high of 1370. Under that the 10day moving average, which we’ve been riding pretty well, is 1350. This will be an important spot to trade against.
Disclosures: Scott Redler is long SPY, OIH, QCOM, INTC, JPM, IBM. Short QQQ.