Pre-market update (updated 8:30am eastern):

  • Europe is trading 0.4% higher.
  • Asian markets traded in a wide range from -0.2% up to +0.8%.
  • US futures are slightly lower ahead of the open. 

Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30am), Jobless Claims (8:30am), Quarterly Services Survery (10am), EIA Natural Gas (10:30am)

Technical Outlook (SPX):

  • SPX finished yesterday with what can be considered to be a doji-like candle pattern – showing indecision by the markets at this juncture. 
  • The 50-day moving average is offering a strong showing of resistance for the SPX over the last 5 trading sessions. 
  • It is very possible that we could continue pulling back off of recent highs. You have recent support at the 200-day moving average which could offer some level of buying for the markets. 
  • Volume saw a slight uptick yesterday compared to what we’ve seen recently. 
  • 8-day EMA continues to provide support for the markets in the short-term. 
  • We are retesting the neckline of the triple-top on the SPX daily. Heavy resistance at this level for now. 
  • We are off of overbought conditions in the short-term. 
  • 30-minute chart looks distributive and has the potential to breakdown further. 
  • Ideally for the bulls, if price action can close at or above 1429, the downtrend off of the September highs would be officially done and over with, as a new higher high would be established for the first time. 
  • Next level of price resistance rests at 1437. 
  • Fiscal Cliff discussions continues to dominate the news. 
  • SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
  • SPX currently has recaptured the 10, 20, and 200-day moving averages. 
  • VIX is back below 17. 

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 12-6-12