Friday Pre-Market Thoughts

Stock futures have returned to the pre-market highs of yesterday and stock futures are set to open almost 1% higher.  Yesterday the morning rip was sold for almost half the day before dip buyers emerged to take the markets back to even.

Draghi isn't interested in cutting rates any further,  but the ECB and nearly every other central bank is still hell bent on keeping a bid under the markets.

This morning S&P500 futures have come back up to kiss the support from the February lows.


The $SPY looks like its starting to lose momentum.  The market could be just a few sessions away from putting in a great sell signal.  The buy and sell signals over the last few years have worked out remarkably well.

Overseas we have the ECB expanding its accommodation for the markets, here in the US we have the FED contemplating another possible rate hike.

As I have pointed out previously, both tech and small caps are lagging this recovery rally.


$IWM you can make the case has already broken the bull market uptrend and is now trending lower, much like $XLE at the end of 2014.  We all know how that ended for energy.

Both $IWM and $QQQ are very close to putting in another sell signal.  So while the ECB is trumpeting further measures to avert deflation, while the FED is stuck behind a rock and a rock - the market is telling us there is a good chance that no matter what the Central Banks have planned, prices are going to fall.

Let see if this morning 1% pop gets sold off just like it did yesterday.  We could be setting up for another reversal day which will increase the chances that next week the market will see a very nice trade-able pull back.

See you in the chat room

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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