Global and U.S. equity markets were trading better ahead of the New York opening. Investors bought stocks last night after the G-20 nations pledged to maintain stimulus plans until their economies fully recovered. The pumping of money into the economy has been one of the main catalysts throughout this entire 15 month rally.
The September E-mini S&P 500 is resting on a .618 support level at 1072.50 this morning. Building a support base at this level could trigger the start of a rally back to 1096.00. On Friday this index made a daily closing price reversal bottom at 1062.75. A follow-through to the upside will be further evidence of building strength.
Traders will be watching today’s personal income and personal spending reports for direction, but the main market mover will be the Case-Shiller housing report. Last week a pair of bad housing reports as well as a dovish outlook for the economy by the Fed helped drive stocks lower.