Pre-market update:

  • Asian markets traded 0.2% lower.
  • European markets are trading 0.3% higher.
  • US futures are trading 0.1% higher ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), Current Account (8:30), EIA Petroleum Status Report (10:30), FOMC Meeting Announcement (2), Yellen Press Conference (2:30)

Technical Outlook (SPX):

  • Strong follow through yesterday off of Monday’s bounce. 
  • It is likely that we have seen the full extent, for now, of the market’s attempt to pullback. 
  • Watch for some short-term resistance at 1870. 
  • SPX recaptured the 10-day moving average. 
  • The possibility exists that we could close at new all-time highs above 1878. 
  • Volume has been extremely weak the last two days. 
  • VIX dropped another good bit down to 14.53. 
  • Still a possibility that SPX 30-min chart is forming a head and shoulders pattern. 
  • FOMC statement comes out today. Expect increased market volatility at 2pm. 
  • The biggest technical support level is the strength SPX found from the trend line that started off of the August ’13 lows. 
  • The Market doesn’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:

  • Added Two new long positions yesterday. 
  • Covered AKAM at 60.73 for a 1.4% loss. 
  • Will look to add 1-2 new additional position today. 
  • Remain short SU at 32.60. 
  • Remain long BBY at 25.93, BWLD at 152.07. 
  • Long 40% / Short 10% / Cash 50% 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 3-19-14