Pre-market update:

  • Asian markets traded 0.3% higher.
  • European markets are trading 0.4% higher.
  • US futures are trading 0.5% higher ahead of the market open. 


Economic reports due out (all times are eastern): Jobless Claims (8:30), FHFA House Price Index (9), EIA Natural Gas Report (10:30), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

  • SPX poised to break above the down trend off of the December highs. The key price point is 2036. 
  • 2064 is the key price level for SPX to get back and above for the bulls. It would finally establish a higher-high and lead to a challenge of new all-time highs. 
  • Volume has noticeably tapered off some since the selling subsided, getting back to average levels. 
  • VIX dropped 5.2% down to 18.85. 
  • After confirming the inverse head and shoulders pattern, SPX 30 minute chart is sporting a nice series of higher-highs, and higher-lows. 
  • Price is riding the underside of the broken trend-line off of the October lows. 
  • Perfect channel that has formed over the last two months that is worth watching going forward as Friday’s bounce occurred right when it was tested. 
  • On the daily chart, dating back to November, you have a dilapidated head and shoulders pattern that has emerged on SPX. Needs to break Friday’s lows for it to confirm though. 
  • 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 1-22-15