Technical Outlook (SPX):

  • Heavy sell-off on Friday – the largest we’ve seen in well over a month. 
  • SPX broke key support 2088 and now is aiming for the next layer of support at 2065.
  • If 2065 breaks, there is a very good opportunity for the bears to push this market below 2000 again. 
  • VIX rose 8.2% to close at 15.20. 
  • The T2108 became drastically bearish on Friday with a complete breakdown that saw an 18% drop, down to 49% of stocks trading below their 40-day moving average. 
  • The head and shoulders pattern that I talked about on the 30 minute chart was confirmed on Friday. 
  • The key to watch for today, is whether the bears are reinvigorated to short every intraday pop the market offers up or does the dip buyers become inspired to buy Friday’s dip. 
  • Previous support on the 20-day moving average was lost on Friday. 
  • Volume was strong during the sell-off on Friday. The strongest reading since 1/30/15.
  • 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 3-9-15