Eyeing The Double Top

Good morning. Traders are focused on the retail sales report which rose +0.2% (above consensus expectations of a decline of -0.2%) and the unexpected rise in import prices. Also, initial jobless claims fell 5,000 to 308,000. Later this morning a report on business inventories will be out at 10:AM.

Premarket futures have been slightly negative but there's not much conviction. Stocks trading higher include LVLT, WITS, RFIL, DIOD, XMSR, HANS, KNDL, NURO, STLD, RMBS, AKAM, XLNX, CRXL, and GILT. Stocks under pressure include FNET, BOBJ, ARTX, STLY, APCC, TWTC, NFLD, ACGY, and BIDU.

After four days of gains, the market is coming up on some sturdy levels of resistance (i.e. the May high in the S&P 500) as well as an overbought condition. Some choppy consolidation would be healthy over the next two days. Traders will be eyeing the potential for a "double-top" situation and how that plays out is very important near-term. Have a terrific Thursday!