Pre-market update:

  • Asian markets traded -0.2% lower.
  • European markets are trading 0.2% lower.
  • US futures are trading 0.2% lower ahead of the market open. 


Economic reports due out (all times are eastern): Employment Situation (8:30), Treasury STRIPS (3)

Technical Outlook (SPX):

  • Yesterday marked the third straight day that SPX made new intraday highs, only to close lower on the day. A phenomenon that hasn’t been seen in over 50 years. 
  • Gap ups are having a very difficult time in holding their gains, with the last three days resulting in a gap fill. 
  • There is a strong possibility that if SPX dips below 1990, the likelihood of the market rolling over dramatically increases. 
  • Right now is not the time to get short – wait first for the market to break a key price level. 
  • SPX 30-minute chart shows the market ready to breakdown and out of recent consolidation. 
  • VIX rose yesterday by 2.3% to 12.64. 
  • At the moment there is little to no fear in this market. That can always change, but no major themes in the market that can cause problems for it right now. 
  • A lot of nontraditional traders are starting to get interested in this stock market which usually starts to show that there is too much “froth” in the market. 
  • The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up. 


My Trades:

Chart for SPX:

SP 500 Market Analysis 9-5-14