Pre-market update:

  • Asian markets traded 0.1% higher. 
  • European markets are trading 1.4% lower.
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), PPI-FD (8:30), Treasury International Capital (9), Industrial Production (9:15), Atlanta Fed Business Inflation Expectations (10), Housing Market Index (10), Janet Yellen Speaks, EIA Petroleum Status Report (10:30), Beige Book (2)

Technical Outlook (SPX):

  • Dip buyers came in yesterday and kept the market from selling off – instead creating a solid doji candle to close out the session for SPX.
  • As before, the 20-day moving average keeps coming up strong for the bulls offering support and an area where the bulls can bounce hard off of. 
  • Volume was very strong yesterday, despite only selling off a small amount. 
  • Since 7/1, SPX has essentially be consolidating at the highs. Not at all surprising, and probably necessary. 
  • The number one goal of the bears at this point should be to get price below the lows of last Thursday at 1952. Next stop would be creating a short-term lower-low at 1944. 
  • SPX heading towards short-term overbought again. 
  • VIX saw a minor increase to 11.96 yesterday. 
  • 30-minute chart of SPX shows a choppy uptrend in play. 
  • This market still leans bullish, but needs to break out to new all-time highs at some point this week if it wants to keep the momentum on its side. 
  • The dip buying has also been in conjunction with holding the upward trend-line off of the 6/12 lows. 
  • SPX hasn’t seen a move of more than 1% in either direction since April. 
  • 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:

  • Sold BKD at 34.14 yesterday for a 1% gain. 
  • Sold GOOG at 582.86 for a 0.4% gain. 
  • Added two new additional positions yesterday. 
  • Will look to add 1-2 new positions today. 
  • Remain long AXL at $19.73, WDC at $94.87, KATE at $38.10, VALE at 14.01. 
  • 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 7-16-14