Pre-market update:

  • Asian markets traded 0.6% higher.
  • European markets are trading 0.6% higher. 
  • US futures are trading 0.3% higher ahead of the market open. 


Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Housing Starts (8:30), Redbook (8:55), FHFA House Price Index (9), S&P Case-Shiller HPI (9), Consumer Confidence (10), Richmond Fed Manufacturing Index (10), State Street Investor Confidence Index (10)

Technical Outlook (SPX):

  • A green-to-red market session yesterday as the final hour pushed stocks lower on the day. 
  • The pullback should be considered minor and nothing at this point to be concerned with. No technical damage or threat to the charts. 
  • The rising trend-line off of the 10/9 lows has short-term support at 1796 for today. 
  • Expect this week to see the volume levels diminish as the week progresses. Wednesday and Friday the trading will be extremely light. Today and tomorrow will be light as well. 
  • As has been the case with 1500, 1600, and 1700 this year, when we cross these important milestones, the market kicks it in to full-on rally mode. I expect the same with 1800. 
  • Historically, Thanksgiving Trading week is one of the most consistently bullish weeks for trading. Careful with being short. 
  • Also, the 10-day moving average has been an excellent guide for the health of this market during strong uptrends. No different here. 
  • At this point, there is no reason to be short this market. None at all. 
  • Strong pop in the VIX yesterday rising up to 12.79.
  • SPX has traded higher for seven weeks straight on the weekly chart. That is the most consecutive weeks there’s been since the March ’09 bottom. 
  • Key support going forward becomes 1777 at Wednesday’s lows. If that breaks you could have a downside resumption. 
  • Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

  • Did not close out any existing positions. 
  • Added two more long positions. 
  • Will look to add between 1-2 new positions today to the long side. 
  • Current Longs: GT at 21.71,  ETFC at 17.63, KKR at 23.18. 
  • Long 50% / Cash 50% 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 11-26-13