S&P futures are pointing to a slightly lower open for stocks this morning, but they're starting to trend upward as we write. S&P futures are lower by 2 points, NASDAQ futures are off 25 and Dow futures are down 28. Traders might want to stick with some of our "key indexes" this morning and we're going to recap a couple that are at good levels to be watching this morning. Read EVERYTHING below please.
Gold/Silver Index Chart - 60-minute interval.
Yesterday was a "bad" day for the XAU.X and traders may want to observe the inverse relationship between this index and what the broader markets did yesterday, coupled with the action we saw in bonds. The XAU.X by itself is more useful when used with treasury yields. We will note that bonds are trading higher (in price) and yields are off slightly. Market bulls want the XAU.X to follow. A break below the 50-period MA (thin blue) in the XAU.X could get some bulls back on stocks this morning.
Biotechnology Index Chart - 60-minute interval.
Yesterday's last hour surge in the BTK.X had us hopeful for a continued rally in the NASDAQ today. We'll now note that NASDAQ futures have turned POSITIVE as we're writing (up 4.5 points). We've talked about how a wave pushes the surfer toward shore and the BTK.X may be the "wave" that pushes the NASDAQ higher. OK to be bullish here, especially if Amgen (AMGN) gets going.
Amgen Chart - 60-minute interval.
Yesterday we thought AMGN would be a key stock to watch if the BTK.X was going to make a move when the stock was trading at $66.50. The stock did move and got the BTK.X above horizontal resistance. We'll now be watching AMGN closely here to see if it can get through and excellent test of downward and upward trending levels of resistance. If it can sustain its current move and break above $70 watch out.
Stick with your observations
If you're game plan worked well yesterday and you booked or are holding nice profits, then stick with those indicators and scenarios. Don't deviate from the plan and "try something new." We feel very comfortable with the stocks, indexes and scenarios we have in place and we'll continue to touch on those throughout the day.
Futures now turning positive.
In the fifteen minutes it has taken to write the above comment, NASDAQ futures are now up 10, S&P futures have edged into the green and Dow futures are down 10. We'd expect things to change before everyone sees this, but it looks like some things are starting to favor the bulls early.