Abbreviated Morning Post- 7-13-12

With the release of a number of important earnings updates, monetary statistics and few other reasons, this will be be an abbreviated morning post.

First, we note the powers-that-be in China announced that Q2 GDP gained 7.6%, below estimates. The slowdown in GDP was largely priced into the market however, and Asian and European stock markets are higher following the release.

This includes futures that are higher in the U.S., probably on a combination of the reduction in uncertainty and on the potential of further Chinese stimulus.

As for the S&P 500,

The S&P 500 spider is trading below the 50-day moving average, a near-term resistance level above the $134 price level. The market may test this resistance level, but we think that if downside volume comes into the market that it increases the odds that the SPY goes to the 200-day moving average or lower.. 

The UUP traded above the resistance level in yesterday's trading on volume greater than whats has been seen in June. Trading was choppy and the ETF closed towards the middle of the days trading range. We think that this suggests indecision on the part of traders and investors. This remains one to watch.