Pre-market update:
- Asian markets traded 0.9% higher.
- European markets are trading 0.2% higher.
- US futures are trading 0.2% higher ahead of the market open.
Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30), Jobless Claims (8:30), Productivity and Costs (8:30), Factory Orders (10), EIA Natural Gas Report (10:30)
Technical Outlook (SPX):
- Yesterday represented the SPX taking a pause before a likely resumption of the uptrend.
- These consolidation days are healthy for the market, especially when they occur at the highs without giving up any ground.
- Considering that we’ve seen the S&P 500 rally over 140 points in the past month, there is plenty of reason to be be very guarded in this market at this point.
- Continue to trade long, but do it with eyes wide open know that a period of pullback could be on the horizon.
- Volume tapered off some yesterday.
- We remain extremely overbought but that can always go on for longer than we expect.
- On the SPY you have a huge gap now that needs to be filled at some point from yesterday – there is also the gap up from 2/7 that has gone unfilled as well.
- The 10-day moving average is an excellent barometer for gauging the health of this market.
- 30-minute chart is once again putting in a series of higher-highs and higher-lows.
- The biggest technical support level is the strength SPX found from the trend line that started off of the August ’13 lows.
- Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up.
My Opinions & Trades:
- Closed out JDSU yesterday at 13.91 for a 1.1% gain.
- Added 1 new long position yesterday.
- Remain long DOW at 47.46, PHM at 20.62, PH at 119.24, GT at 26.64, MOS at 48.73, CTSH at 104.19, BX at 33.50.
- Will look to add 1-2 new additional positions today.
- Long 70% / Cash 30%
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
