Monday Morning Outlook

 

·      US Stock futures are set to open higher by about 0.3% after a rally in Asia and a bounce in Europe. The market will be attempting a successful rebound from one of the worst weeks in years and so far Monday morning it is off to a good start.

·      Gold has been able to move higher for four consecutive sessions after the beating it took early last week. The SPDR Gold ETF (GLD) finished the week at $135.47 and is rallying premarket to $138.06. The overreaction last Monday was evident, what is not so clear is how long the dead cat bounce can last. I am looking for the $141 area as a time to sell.

·      Southeast Asia remains a hotspot for the market. The Philippines market hit a new all-time high last night and the iShares Philippines ETF (EPHE) is set to break out of a bullish ascending triangle. Keep an eye on the ETF. The ETF that covers the entire region, Global X ASEAN 40 ETF (ASEA) closed at a new high on Friday.

·      Investors need to watch the 50-day moving averages on the S&P 500 and Dow this week as they continue to hold just above the trend lines. The level on the S&P 500 is 1543 and 14,354 on the Dow.