S&P June Futures has pulled back off the recently made high at 1194 and test Friday’s break-out point at 1188 during the pre-market session

The pull-back encountered responsive buying during the overnight session. Support held and price traded back to Monday’s settlement at 1192.

The negative overnight bias was attributed to disappointing quarterly results from Alcoa. The Dow component posted in-line adjusted earnings but its smaller-than-expected revenue: raising questions regarding demand.

The retracement back to settlement failed to attack buying interest and price sold off from 1192 and trade back to the overnight low at 1188. Selling pressure increased during B-period and continued until the end of C-period, with price trading down to 1185, just above Friday’s low at 1183.

Following the initial sell-off, each subsequent reattachment off the low failed to elicit a sell response. Previous short covered and price slowly traded high until L-period, which terminated at Monday’s high 1196.

Price pull-back off the high and settled the session at 1193.

First quarter results from Alcoa unofficially marked the start earnings season.

Fellow Dow component JPMorgan Chase is scheduled to report its latest quarterly results tomorrow morning, ahead of the opening bell.

Regional bank stocks were especially weak. The group declined 2.0% following the decision by analysts at UBS to downgrade.

Participants BID Intel to a fresh 52-week high ahead of its post-close earnings announcement. Shares of the semiconductor giant helped give the Semiconductor Index a 0.6% gain and the Nasdaq Composite trade up to fractionally improved 52-week high.

Technical Reference Points for June S&P Futures Contract

Potential Next Up-side Trading Range

1221, September 23, 2008 High

1200, Monday’s projected high

Resistance

1193 June Futures, April 9th new 52 Week High [1194 CASH]

Support

1185, minor, March 13th Low

1183, minor March 9th Low

1173, March 7th Low

1165, March 31st Close

1155, near term support March 26 Daily Low

1148, Major Support March 22nd low, the FOMC Low

1136, March 15th Daily Low

1134, March 9th initiated buying M-period, March 10th Daily Low, March 11th Daily Low

1125, the upper parameter of the 3-day distribution, March 2nd thru March 4th

1116, the lower parameter of the 3-day distribution, March 2nd thru March 4th

1105, minor, once tested, the February 26th settlement, overnight low

1086, the February 25th daily low

1078, February 16th low and the upper limit of weeklong consolidation range

1044 February 5th Correction Low [Cash Index]

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