Pre-market update:

  • Asian markets traded 0.7% higher. 
  • European markets are trading flat.
  • US futures are trading flat ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), ADP Employment Report (8:15), Factory Orders (10), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

  • Huge move higher for SPX yesterday and a breakout of the bull flag. 
  • There is a legitimate chance now in the short-term that price expansion could go all the way up to SPX 2000.
  • Expect for the volume to lighten up dramatically today and tomorrow ahead of the Fourth of July holiday. 
  • Reminder that the markets close early tomorrow as well. 
  • Volume was strong yesterday, likely due to the new quarter & month. 
  • For the bears to make any kind of impression on this market, they need to start with breaking price below the 10-day moving average. That moving support level has provided substantial support over the last seven days. 
  • SPX 30-minute chart broke out of the consolidation from recent days. 
  • Very little reason to be short this market at this juncture.
  • Important support is at 1925, as a break of that price level would establish a new lower-low.
  • The rising trend-line off of 4/14/14 currently sits at 1931. 
  • 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:

  • Did not close out any positions yesterday.
  • Added 3 new long positions yesterday. 
  • Will look to add 1-2 new long positions today. 
  • Remain long FB at 66.63, CX at 13.22, AAPL at 91.49, XLNX at 47.34.
  • 70% Long / 30% 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 7-2-14