Conflict. You can see it this morning in the way S&P500 futures are trading. It is not sure where it is supposed to go today. From a personal perspective Monday's have not been my brightest days to trade, so if it takes today's entire session for the market to make up its mind, that is quite all right with me. Although last Monday's entry into some $STZ $160 puts for $1 worked quite well, running over $5 a few days later. There are quite a few attractive set-tups heading into this week as well as earnings yet to be reported.

But what about this market? Our economy is booming in such a way that the FED continues to focus on not the 'if' but more of the 'when' and how many when talking about interest rate hikes.

Last week's initial response was some rather nasty selling, and then upon breaking and holding key support, the market rallied on Friday. Are we to expect the same today?

The $SPY has used the $204 level previously as a launch point for higher prices. Of course, since we have returned to $204 again, those higher prices are short lived. But here were are again. Look back to last summer and the market was gyating around $204 before it collapsed. The same could be said heading into 2016 - and we know it was a terrible start of the year for the market. Here we are again muddling around $204 on the $SPY. The formation looks even more ominous than the previous two. A head and shoulders? What is different is that the price action has remained mostly above $204. That level is key going forward. From a bearish perspective, waiting for a break and hold under $204 should offer some great risk/reward.

The Nasdaq and small caps offer a little more bearish skew heading into the summer.

The $105 level is KEY support for $QQQ.

and $IWM $110, which is broke through with vigor on Friday. Also watch for a break out or down in the short term. Prices are aligning.

This mornings action is indicative of a market that still is digesting a possible rate hike.

Chop chop chop.

As the week progresses the market will make up its mind and hold or break key price levels noted above. We also have more earnings this week, which should make for some more tremendous earnings trades.

Here are the morning:

Charts

Watchlist

Earnings Breakdown

See you in the chat room.