An AAPL upgrade fired up a strong tech rally offsetting the BA decline as the orchestrated an impressive short squeeze and putting the bulls back in control at least for the short-term.  The big question is can they maintain this control as we once again push upward toward the significant price resistance levels in the index charts.  Only time will tell but it would be wise to respect the price resistance being careful not to over-commit staying focused on the price action for clues of a bearish line of defense.

BA is once again pushing lower this morning after yet another country has grounded the new 737 pulling the Dow Futures down in the process.  After such an impressive rally yesterday it would not be out of the question to see a little market rest or even a bit of a profit-taking pullback.  Stay focused on the price action and remember that bears will not likely give up without a fight.

On the Calendar

On the Earnings Calendar we have 125 companies reporting today.  Notable reports, COHU, COUP, DKS, MOMO, SWCH & ZAGG.

Action Plan

After a fantastic rally lead by tech stocks after an AAPL upgrade.  BA’s substantial gap down recovered sharply after the FAA announced that the aircraft was still airworthy.  However, during the evening another country has grounded the new 737 and the stock is once again sliding south pulling the Dow futures into the red this morning.  SP-500 and NASDAQ futures are currently modestly higher.

As indexes recover from last weeks slide, keep an eye on overhead resistance and be careful not to overtrade or overcommit long near such significant price levels.  At 8:30 AM Eastern we get the latest reading on CPI where consensus is expecting to see an increase.  Obviously, that could have greatly effect the market open depending on the actual number so keep an eye on the futures as we approach the open.  Remember to trade the chart for what it is not for what you want it to be. 

Trade Wisley,

Doug