Pre-market update:

  • Asian markets traded 0.3% higher.
  • European markets are trading 0.4% higher. 
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), Challenger Job-Cut Report (7:30), Treasury Refunding Announcement (8:30), Leading Indicators (10), EIA Petroleum Status Report (10:30), Treasury STRIPS (3)

Technical Outlook (SPX):

  • Dip buyers came in quickly yesterday to support the market and rally off the days lows and recovering most of the day’s losses. 
  • Over the last 8 days the market has been consolidating and looks poised to breakout yet again to new highs. 
  • SPX off of overbought levels. 
  • The 10-day moving average continues to provide support for the SPX and the dip-buyers to rally off of. 
  • If the bears are going to control this market, it needs to take out the 1740 level. 
  • 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 positions on Tuesday.
  • Increased my long exposure with two new positions yesterday.  
  • Currently 40% long / 60% cash.  
  • Will strongly consider adding 1-2 new long positions today. 
  • Current Longs: ALKS at 35.49, GES at 31.55.
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 11-6-13