Pre-market update:

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


Economic reports due out (all times are eastern): GDP (8:30), Jobless Claims (8:30), Corporate Profits (8:30), Pending Home Sales Index (10:30), EIA Natural Gas Report (10:30), EIA Petroleum Status Report (11)

Technical Outlook (SPX):

  • First pullback yesterday in five sessions, which was necessary and helpful in continuing the uptrend going forward. 
  • In fact, a pullback to 1897-1900 is completely fine, but needs to hold that level. 
  • Could see a gap fill on SPY back to $190.35 in the coming days. 
  • The market is showing every characteristic over the last week of trading that it full intends to keep pushing higher and likely send price into the mid-1900’s on SPX.
  • Volume is still higher over the past two days but continues the trend of the last few months of gradual weakening. 
  • The 30-minute chart of SPX shows a lot of heaviness and distribution taking place the last two days. 
  • VIX sitting on year long support dating back to 4/12. 
  • Overall the trend is up, but facing the possibility of a slight pullback in the short-term. 
  • SPX is in overbought territory. 
  • If the SPX, over time advances well into the 1900’s, then it likely becomes that the correction everyone was looking for, took place over time and with consolidation and not with a significant pullback. 
  • The number one priority of the bears has to be to get price back below 1900 and ideally back below 1883.=
  • The 50-day moving average continues to be a significant moving average of support level to watch going forward. 
  • The short-term support rising off of the 4/28 lows continues to hold up well. 
  • 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 Opinions & Trades:

  • Closed out GLW at 21.31 for a 1.8% gain. 
  • Added one new long position yesterday.
  • I will look to add 1-2 new long positions today. 
  • Remain long LVS at 73.16, AMAT at 20.04, DOW at 51.23, LAZ at 50.55.
  • 50% Long / 50% 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 5-29-14