Pre-market update:
- Asian markets traded 0.3% lower.
- European markets are trading 0.8% lower.
- US futures are trading 0.1% lower ahead of the market open.
Economic reports due out (all times are eastern): None
Technical Outlook (SPX):
- Strong rally on light volume and half day of trading on Thursday.
- Legitimate possibility SPX tests or breaks 2000 today.
- Long-Term upper channel band that began in March of 2012 was broken last week, which gets some heavy resistance out of the way.
- SPX is getting overextended on the daily chart and could see a possible pullback in the coming days just to digest the recent bullishness the market has experienced.
- Solid uptrend on SPX 30 minute chart with consecutive higher-highs and higher-lows.
- VIX dropped 4.6% down to 10.32.
- For the bears to make any kind of impression on this market, they need to start with breaking price below the 10-day moving average. That moving support level has provided substantial support over the last two weeks.
- Very little reason to be short this market at this juncture.
- Important support is at 1944, as a break of that price level would establish a new lower-low.
- The rising trend-line off of 4/14/14 currently sits at 1937.
- 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 on Thursday (Market was closed on Friday).
- Did not add any new positions on Thursday.
- Will look to add 1-2 new positions today.
- Remain long FB at 66.63, CX at 13.22, AAPL at 91.49, XLNX at 47.34, URI at $105.81, GOOG at $580.51, BKD at $33.79.
- 60% Long / 40% Cash
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
