Futures are mixed this morning as the US government launches a probe of the FAA and their approval of the 737 Max aircraft.  As a result BA shares are gaping down, giving back Friday’s gains and setting the stage for a mixed open according to the futures.  With the FOMC this week and first-quarter earnings finally starting to wind down don’t be surprised to light and choppy price action after the morning rush as we wait for the announcement and forecast Wednesday afternoon. 

*** The flooding in Nebraska made last week very challenging.  They restored internet service to the area on Saturday and the flood waters have begun to recede across Nebraska.  I’ve completed the clean up from the flooding in my house and reconstruction can now begin.  My wife and I would like to thank everyone for all the kind notes and well wishes we have received over the last week.  You are the best!

As bulls continue to test upper resistance levels keep in mind that the bears continue to lurk about defending their territory above.  Remember to take some profits near resistance and be careful not to over-trade or directionally overcommit as the bulls are bears battle over this important level. 

On the Calendar

We have over 140 companies fessing up to quarterly results this morning.  Notable reports include, TLRY, TACO, LL, OSTK & STNE.

Action Plan

The bulls have been doing a great job pushing hard and continuing to test key resistance levels in the index charts.  However, the bears have stood their ground thus far defending resistance with the exception of the QQQ which closed just above resistance on Friday.  Currently US Futures are mixed with the Dow looking lower amidst an FAA probe and BA shares giving up Friday’s gains.  Asia stocks closed higher overnight, and European markets are mostly higher but mixed at the time of writing this blog post.

As markets continue to be hope for a positive resolution Us Trade Negotiations the market faces another FOMC meeting this week including the all-important forward forecasts.  Don’t be surprised to light choppy price action after the morning rush as the market waits for the Fed Announcement on Wednesday afternoon.  Although there are still notable earnings this week today is last big day of the very strung out first-quarter earnings season with more than 140 companies reporting.  Stay long but respect overhead resistance saying focused on price action for clues and stay disciplined to your rules.

Trade Wisely,

Doug