Technical Update

What’s in Today’s Report:

  • Market Technical Update (Three Support Levels for the S&P 500 and a Line in the Sand for the VIX)

Futures are slightly higher thanks to a rally in Asian markets following mixed Chinese economic data.

Chinese Fixed Asset Investment (5.4% vs. (E) 5.3%) and Retail Sales (9.2% vs. (E) 9.1%) beat estimates, while GDP (6.5% vs. (E) 6.6%) and Industrial Production (5.8% vs. (E) 6.0%)  missed.  But, commentary from Chinese officials raised hopes of more economic stimulus and Chinese markets rallied more than 1%.

Today there is one economic report, Existing Home Sales (E: 5.30M) and two Fed speakers: Bostic (12:00 p.m. ET) and Kaplan (12:45 p.m. ET), but focus will remain on earnings (which were “ok” overnight and this morning as AXP, PYPL and HON beat) and Italy.  If there’s further deterioration in the Italy/EU situation, stocks will come under pressure once again.