Pre-market update:

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


Economic reports due out (all times are eastern): Jobless Claims (8:30), Import and Export Prices (8:30), EIA Natural Gas Report (10:30)

Technical Outlook (SPX):

  • SPX saw renewed follow through on the current bounce yesterday.
  • This sets up for a showdown of heavy resistance overhead at 1954. If it fails to break through this price level once it is tested, it could result in renewed downward selling pressures in this market. 
  • The type of shock news that we saw drive this market down before, is now having little to no effect on it. 
  • A very well defined inverse head and shoulders pattern has formed on the 30 minute chart of SPX. 
  • T2108 (% of stocks trading above the 40-day moving average) has confirmed the move in the SPX. 
  • VIX continues to drop – this time another 8.7% down to 12.9. 
  • Volume has been much lighter of late, particularly during the recent bounce. 
  • SPX starting to come off of oversold conditions. 
  • A move below 1928 would complicate things greatly for the bulls. 
  • Ultimately, the main goal for the bears going forward should be to get price back below 1904. 
  • 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:

  • Added one long position to the portfolio yesterday. 
  • Did not close out any positions yesterday.
  • Remain long EBAY at 51.75, GPK at 12.00, AAPL at 95.56, FB at 72.53, ESRX at 71.01, UA at 69.10, AAL at 37.42.
  • Will look to add 1-2 new long positions, or start a short position as a hedge if conditions warrant it. 
  • 70% Long / 10% Short / 20% Cash
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 8-14-14