Futures are wildly mixed this morning the Dow Futures pointing to a gap down of more than 150 points while the SP-500 and NASDAQ Futures point to modest gains.  The huge decline in the Dow is due to the sharp decline in BA shares after a second 737 Max 8 plane crash.  It is also important to note that we have a potential market-moving Retail Sales number at 8:30 AM Eastern after the very disappointing results in the last reading.

As the SPY and QQQ move higher this morning remember to respect the possible overhead price resistance above.  If a lower high failure would to occur that would be technically very damaging so stay focused on price action and avoid chasing the morning gap.  Let’s wait and see if buyers step up after the open in support of the gap.  The Whitehouse has forwarded the new budget that includes a border wall funding and threats of yet another government shutdown are already spinning the political rhetoric.  Also keep in mind the US/China negotiations could still be a huge market-moving event if or when we finally get news on the subject.

On the Calendar

On the Earnings Calendar we have 100 companies reporting today. 

Action Plan

We have a very interesting market setup this morning that could make for a challenging day.  Asian markets that began three trading day lower managed to close modestly positive despite global growth concerns.  European are currently slightly higher across the board ahead of a crucial Brexit vote while US Futures are widely mixed.  Currently the Dow Futures point to a gap down of more than 150 mostly due BA shares falling sharply as the result of another plane crash.  However, the SP-500 and the NASDAQ futures are pointing to gap up opens that may retest resistance levels.

It will be interesting to see how this plays out with such mixed results at the open.  Keep an eye on overhead resistance levels in both the SPY and QQQ and be very careful about chasing the open.   The Retail Sales number at 8:30 AM Eastern could be critical for the day.  The last reading on retail sales saw a decline -1.2% and consensus for today is for a reading 0.0% which means the futures could quickly change before the open depending upon actual number.

Trade Wisely,

Doug