Futures have faded all morning after gaining overnight, and how point to a lower open on Wall St. Dovish comments from Fed Chairman Ben Bernanke sparked a rally to multi-year highs yesterday, but it appears there will be little in the way of follow-through. However, the move could have been overdone as there was no suggestion of a QE3. I would not expect much today after such a big move.
Typically you get a up or down within 5-7 handles the day after. Most stocks across the board have had tremendous moves with commodities finally joining the rally the past few days. From a trader’s perspective, there has been a lot to like if you ride trends and rotate to the best patterns sector to sector.
The next cluster of resistance in the S&P is 1422-1425, then major resistance at 1440. S&P support is 1405-1408 and then 1396-1398.
As the week continues, make sure not to get overly giddy or over extended as it does get a bit trickier in the last few days as well as the first few of the next quarter.
Disclosure: Scott Redler is long LNKD, AAPL, BAC, MS, LVS, CZR, F, SOHU, DNKN, TBT, MSFT, INTC. Short SPY, QQQ.