TECHNICALS-SPX

Checking the technicals on the SPX, the index is trading a hair above its down sloping 50 day SMA and a hair below its upward sloping 200 day SMA. Stochastics and MACD look a bit overbought and the 2 day RSI sits at 44. Its also trading at the high end of its 1220/1280 recent trading range. Note that the DJIA has been stronger than the SPX as it trades above both its 50 and 200 day SMA's. Bottom line, not much of an edge either way except for the last few days of the month and first few days of the month generally being a bullish period.

Economic numbers of the day come in rate friendly as the GDP number is +2.5 vs expectations of +3, so the thinking of the moment is rates will not be raised in August. The current rate on the 10 year Bond is 5.00 as it has fallen from 5.035 before the release. So for the moment bad is good; but it could all change on Monday.

Fair value is way below where futures are trading in light of the post 4:00 bounce back yesterday. My game plan should probably be to go to the gym as there doesn't look to be much of an edge on a swing trade.