Pre-Market Update- SPX:XBP,SPX:XEU,FTSE,SPX,COMPQ,USD, JPM, PRU,SMH,& NQ
S&P 500 Large Cap Index/ British Pound & S&P 500 Large Cap Index/Euro
Both of the daily charts illustrates that they are in bullish ascending triangles and in the process of breaking out. What does the SP 500 in Pound Sterling and Euros look like? Well, according to both charts, it looks like they are making new 52 week highs. This is the SPX converted into Pounds and Euros. What does this mean? It means that foreign money is buying US equities because they are getting a better return on their money than US investors themselves. It makes us equities more attractive to foreign investors. This is called global juice.
London Financial Times Index (FTSE)
As you can see from the daily chart the FTSE is now trading at 4 and half year highs at 5828.90, and it looks poised to move higher. Indicators and oscillators have been bullish for months. Again you see global juice in this chart.
The S&P 500 Large Cap Index (SPX) - Hourly chart
The bottom line is that it has broken out of the wedge. I am not putting the wave count in here. I just want to point out that it is looking bullish. Short term target remains 1304-1334 on the conservative side.
The Nasdaq Composite (COMPQ)- Hourly Chart
The hourly chart of the Nasdaq is bullish. As you can see by looking at the chart, the COMPQ has completed it's wave (3) to (4) pullback. It is now breaking out above the down trend line. Indicators and oscillators are bullish. There very little bearish divergence. Watch for news on DELL and AMD.
The US Dollar (USD)- Weekly Chart
The dollar is bearish and it really needs to be tanking. It back kissed the uptrend line and I believe that it may be forming a possible bear flag. The Aroon just had a bearish cross, and there is bearish divergence on the weekly.
J.P. Morgan (JPM)- Daily chart
The daily chart illustrates that JPM is forming a possible ascending triangle. The price target is in the mid 40's once it breaks above the down trend line. As you can see, the PPO and stochastics are starting to turn up. I am not going to put JPM in the portfolio, because I prefer higher beta momentum stocks. Nevertheless, if you like large caps then please feel free to buy it. Should JPM break out, so should the banking and brokerage sector, which in turn shall add momentum to the broader market.
Prudential Financial Inc. (PRU) Daily chart
The daily chart shows that PRU is in a large ascending triangle pattern. PRU has been consolidating in a slim jim pattern at the top of the triangle in the range of $73.00 - $75.00. I want to add PRU to the portfolio table. We need some brokerage stocks in here. Entry is at $75.79 or $76.13 which ever comes first. Price target is $90.00 to $100.00.
Semiconductor Holders ETF (SMH)- Daily Chart
The SMH daily charts illustrates that it is in a diamond pattern. Diamond patterns are showing up all over the place in this market. The SMH is now breaking out of the diamond pattern. It could see some momentum now.
Nasdaq Futures (NQ)- NQ Daily chart
Nasdaq Futures are slightly above the down trend line at 169273. If NQ can cross the 72% retracement level at 173718 it negates the impulse wave down and makes it a corrective wave.
