Pre-market update:

  • Asian markets traded 0.3% lower..
  • European markets are trading 0.4% lower.
  • US futures are trading 0.2% lower ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), EIA Petroleum Status Report (10:30), Treasury Budget (2)

Technical Outlook (SPX):

  • Double bottom confirmed yesterday on the daily chart of SPX as bulls managed to break through key resistance at 2064 and close above it. 
  • Yesterday was a key day – that 2064 had provided impressive resistance over the course of 2015 and the bulls finally managed to close over it. 
  • The key for today is follow-through. The bulls need to add, or at the very least hold the gains from yesterday. 
  • Three days prior to yesterday shows some support for the bulls at the 50-day moving average. 
  • SPX 30 minute chart is looking to establish a new higher-high on its currently rally after establishing a nice higher-low. 
  • Last 4 days has seen notably lower volume on SPY. 
  • VIX dropped 7.1% to 17.23.
  • Weekly chart of SPX showing a breakout of recent consolidation. 
  • Monthly chart of SPX showing a potential bull flag breakout. 
  • 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 2-11-15