Pre-market update:

  • Asian markets traded flat. 
  • European markets are trading 0.3% lower.
  • US futures are trading 0.1% lower ahead of the market open. 


Economic reports due out (all times are eastern): Personal Income and Outlays (8:30), Chicago PMI (9:45), Consumer Sentiment (9:55), Famr Prices (3)

Technical Outlook (SPX):

  • SPX confirmed yesterday that it is clearly in a uptrend after buying up the previous day’s weakness.
  • SPX has finished higher 7 out of the last 9 sessions. 
  • Eventually there will be a  pullback which will define how steep the uptrend is going to be. But for now the initial burst higher can last 70-80 points without pulling back at all. 
  • A pullback to 1897-1900 is completely fine, but needs to hold that level. 
  • SPX/SPY have continued the trend of the past 5 sessions of being extremely weak in volume. 
  • There does remain a significant gap up to fill from 5/27 on the SPY chart. 
  • Russell has been holding the 50-day moving average over the last 3 sessions. That is extremely important. 
  • Nasdaq continues to make a strong push out of its basing pattern. A move towards 4300 should be in short order. 
  • VIX having a difficult time breaking through that support level dating back to April 2013. 
  • The market is showing every characteristic over the last week of trading that it full intends to keep pushing higher and likely send price into the mid-1900’s on SPX.
  • If the SPX, over time advances well into the 1900’s, then it likely becomes that the correction everyone was looking for, took place over time and with consolidation during the March, April and May months and not with a significant pullback. 
  • The number one priority of the bears has to be to get price back below 1900 and ideally back below 1883.
  • The 50-day moving average continues to be a significant support level to watch going forward. 
  • The short-term support rising off of the 4/28 lows continues to hold up well. 
  • 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 Opinions & Trades:

  • Closed out DOW at 52.50 for a 2.5% gain.  
  • Added two new long positions yesterday.
  • I will look to add 1-2 new long positions today. 
  • Remain long LVS at 73.16, AMAT at 20.04, LAZ at 50.55, AKAM at 54.52.
  • 60% Long / 40% 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 5-30-14