Pre-market update (updated 9am eastern):
Europe is trading mixed/flat.
Asian markets traded mixed/flat.
US futures are trading significantly higher.
Economic reports due out (all times are eastern): Dallas Fed Manufacturing Survey (10:30am), Farm Prices (3pm)
Technical Outlook (SPX):
SPX finished lower on Friday for the fifth straight day and for the six time in the last seven sessions.
Fair value for the market is significantly off this morning after a major drop in after hours trading on Friday due to a breakdown in the Fiscal Cliff talks. Fair value is about 12 points lower than where we closed at.
We are likely to test at some point the lower Bollinger Band on SPX. Often times we will repeatedly test this level before actually bouncing.
We could see a test of the 200 day moving average. There hasn't been anything significant about this mov...