Pre-market update:

  • Asian markets traded 0.6% higher. 
  • European markets are trading flat.
  • US futures are trading flat ahead of the market open. 


Economic reports due out (all times are eastern): Jobless Claims (8:30), Personal Income and Outlays (8:30), EIA Natural Gas Report (10:30), Kansas City Fed Manufacturing Index (11)

Technical Outlook (SPX):

  • Perfect bounce yesterday off of the 10-day moving average, wiping out most of the losses from the day prior. 
  • Clear sign that the Iraq concerns from the day before was a mere ploy by the bulls to get additional shares of stocks on the cheap. 
  • Volume came in at average levels. 
  • I am looking for SPX to establish new all-time highs in the next 1-3 days. 
  • VIX dropped 4.5% and back down to 11.59. 
  • It has been over two months since SPX saw a move of more than 1% (4/16/14).
  • The rising trend-line off of 4/14/14 currently sits at 1924. 
  • 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:

  • Did not close out any positions yesterday. 
  • I added two new additional longs yesterday. 
  • Will look to add 1-2 new long positions today if the market ultimately bounces. Also haven’t ruled out establishing new short positions if necessary. 
  • Remain long FB at 66.63, YOKU at 22.02.
  • 40% Long / 60% 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 6-26-14