Pre-market update (updated 9am eastern):

  • Europe is trading 0.4% higher.
  • Asian markets traded mixed, but overall +0.5% higher. 
  • US futures are slightly higher.  

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45am), Current Account (8:30am), Redbook (8:55am), Housing Market Index (10am)

Technical Outlook (SPX):

  • Huge day for the SPX yesterday, putting an end to the recent sell-off, establishing a higher-low, and closing above 1429 on the day. 
  • There is some longer-term resistance with the triple-top neckline possibly acting as resistance. 
  • Overall, volume remained steady in comparison to what we’ve seen of late. 
  • The trend-line we had been riding higher previously has lessened its steepness with the new higher-low in place. 
  • Strong possibility going forward that the market rallies to close out the year. 
  • Fiscal Cliff talks are improving, and will likely provide an underlying catalyst for the market. 
    • A deal is more likely than not at this point. 
  • SPX reclaimed all significant moving averages. 
  • Weekly chart on the SPX looks extremely concerning, and paints a much bearish picture than the daily chart, with a major bearish shooting star. 
  • If the bears want to accelerate the selling, then price needs to get below 1406 and close below that level. 
  • There’s an inverse head and shoulders pattern formed on SPX daily chart that is confirmed at 1422. 
  • VIX is back in the 16’s..

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 12-18-12