Technical Outlook (SPX):

  • SPX managed to bounce off of support the past two days at 2065. This morning that support looks to be violated with a nasty gap down to open the session. 
  • Yesterday’s mini-bounce shows nothing more, at this point, then a bear flag on the 30-minute chart that will be confirmed today. 
  • Head and Shoulders pattern on the 30 minute chart still in full swing and shows more downside potential. 
  • VIX dropped 0.9% down to 15.01. 
  • T2108 (% of stocks trading above the 40-day moving average) remained nearly unchanged at 49.14% 
  • Expect a challenge right away when the market opens at the 50-day moving average for SPX.
  • The rising trend-line off of the December lows could see a challenge in the coming days at 2014.
  • Always be cognizant of the fact that at any moment the dip buyers can come about and push this market back up. 
  • With yesterday’s bounce, no technical improvements were achieved. 
  • Light volume on yesterday’s bounce. 
  • Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
  • 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 3-10-15