The bulls showed up for work yesterday defending the Friday low, and this morning, ahead of a big round of market-moving earnings reports, they are trying to follow through with another bullish open.  Please pay close attention as we approach overhead resistance and expect wild price action to continue with the VIX remaining elevated above a 30 handle.  Wednesday’s open will depend heavily on how AMZN & GOOGL perform reporting after today’s close, so carefully consider your risk.  Anything is possible!

Asian markets rebounded strongly overnight, with the HSI up 1.23%.  A positive global market sentiment reading also has European markets trading in the green across the board this morning.  Ahead of a big day of potential market-moving earnings reports, the U.S. Futures point to another bullish open to test overhead price resistance levels. 

Economic Calendar

Earnings Calendar

We have another big day of potential market-moving reports with more than 50 companies stepping up with results.  Notable reports include BABA, GOOGL, AMZN, EA, AMCR, AMGN, ATHM, BP, CMG, CB, COP, TCS, ETN, EMR, COM, RACE, FEYE, BEN, GAIN, GL, HOG, HCA, MHO, MPC, MTCH, MCK, MPLX, PFE, PBI, POWI, SIRI, SYY, & UPS.

News & Technicals’

The bulls did a good job defending last Friday’s low but spent a considerable amount of time consolidating in choppy ranges on intraday charts.  Perhaps the major snowstorm on the east coast affected the overall volume.  We still have price resistance levels above to deal will, and with GOOGL & AMZN reporting after the bell today, anything is possible Wednesday morning.  Currently, futures point to a nice bullish open trying to follow through ahead of a big round of morning earnings reports.  GameStop shares fall another 30%, losing more than half of their value in just two days as the Reddit short squeeze begins to fizzle.  However, Robinhood had to raise another $2.4 billion to cover the retail trading frenzy.  What comes next is anyone’s guess, but with the VIX still above a 30 handle, traders will have to remain focused and flexible as the wild ride in price action continues.

It will be interesting to see how the indexes will deal with the price resistance above as market-moving earings roll out.  With the Tech Giants, GOOGL, and AMZN reporting after the bell, the Wednesday open carries the risk of a substantial gap at the open.  The question to be answered is which way, up or down?  Consider your risk carefully as we head into today close.  Keep in mind beginning Job’s data will be in focus the rest of the week, beginning with the ADP on Wednesday, Jobless Claims Thursday, and the Employment Situation number Friday morning. 

Trade Wisely,

Doug