Pre-market update:

  • Asian markets traded 0.8% higher.
  • European markets are trading 0.6% lower.
  • US futures are trading 0.2% lower ahead of the market open. 


Economic reports due out (all times are eastern): Durable Goods Orders (8:30)

Technical Outlook (SPX):

  • SPX experienced another day of very limited follow-through in the market. 
  • The notion that we could push through 2000 on SPX, is being met with selling jitters. 
  • On the S&P 500 futures (/es) there is a very well-defined head and shoulders pattern on the 5-minute chart that started forming on 7/23.
  • Volume tapered off some on SPY yesterday. 
  • VIX popped 2.8% to 11.84. 
  • Potential distribution on SPX 30-minute chart. 
  • SPX in overbought territory. 
  • Some of what I’m seeing here prior to the market open has me concerned that we may be setting up for a short-term pullback here in the market in the coming days. I don’t plan on adding any short positions. Just an observation at this poi nt. 
  • Volume has been relatively flat so far this week. Weak market participation. 
  • If the bears are going to take control of the market they need to push price below the trend-line at 1965 (see chart below).
  • 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:

  • Closed out IPG yesterday at 20.15 for a 3.1% gain. 
  • Did not add any new positions yesterday. 
  • Will look to add 1-2 new long positions today. 
  • Remain long KATE at $38.10, BKD at $35.28, EBAY at 51.75, MS at 32.88, MRO at 40.16, EXPD at 45.69.
  • 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 7-25-14