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Assessment: Stock futures are moving up to start the week. However the futures predict very little as to how the day will go beyond the few minutes after the open. Some decent technical damage was done last week which puts the S&P 500 back at key support. Will this support provide just another little pop and then the bulls vanish once again? That’s what I will be watching. The bulls have not shown up with any sort of volume in recent weeks which has been a material change from the way they have operated up to this point in 2023. Such a change is telling me that the highs might be in and the institutions are dumping shares to weaker hands and locking in their profits. Perhaps moving those profits into “risk free” assets like Treasuries which are paying very healthy returns.

So, what the lack of bulls means is we have not found the level where the bulls plan to mount their defense. The $435 level is one where the bulls have been holding the line, but they have not really pushed higher in a material way. So, while this area is support, it appears it is only a matter of time before it gives way. Today should give some hints for the rest of the week.

Labor Day is next Monday, so we could see light market action Thursday and Friday as traders head out for the long weekend. Which means if there is going to be action it will likely happen the next three days or begin next Tuesday.

Good luck in your trades!