Futures are marginally higher +0.3%... - we were almost -0.5% some 3 hours ago.
Sp'15min
Sp'60min H/S formation
Summary
I am looking to go long today. If we open significantly higher, I'll sit back and look to enter on the base of the next 15min down cycle. Yesterday the rallies never lasted more than an hour or so before rolling over. Today, I'm guessing they'll last longer and show more strength.
From a MACD cycle perspective, the 15min cycle is floored, and the 60min is showing some divergence, suggesting underlying downward momentum is weakening.
We have a few pieces of econ-data today (and tomorrow)...the FOMC minutes are issued at 2pm, and that will probably strengthen the rally...or we'll see yet another rollover.
However, its opex, we've the facebook hysteria still to come, we're at sp'1330, a move to at least the mid 1350s seems very viable. There are a few posters out there suggesting a move up as high as the 1390/95 level. I can't imagine anything higher than 1380/85.
The opening 10/15mins might easily be choppy, and we could still open a touch red. If so, look for black candles on the VIX, and hollow-red (reversal) candles on the indexes to appear. That'll be strong confirmation that the market is flooring..and will jump higher in the early morning (we saw the same thing occur last Wednesday and Friday).
Good wishes for Wednesday trading!