Pre-market update:
- Asian markets traded 2% lower.
- European markets are trading -1.6% lower.
- US futures are trading 0.2% lower ahead of the market open.
Economic reports due out (all times are eastern): None
Technical Outlook (SPX):
- Perfect doji candle formed on Friday bringing a certain degree of uncertainty to the market in the short-term.
- Futures are down in early morning trading on weak China data.
- Breaking the 10-day moving average is the first step the bears must take in changing the tide of this market. Anything else is just noise.
- A break below 1835 – 1840 would represent a major milestone for the bears.
- Volume remains at average levels at this point.
- I am cautious towards this market as recent history suggests 140+ point rallies is on the extreme high end of what a market can do in under a month’s time.
- VIX continues to consolidate over the past four days of trading.
- 30-minute SPX chart is sloppy and shows more consolidation over the past four days than anything else.
- On the SPY you have a huge gap now that needs to be filled at some point from 3/4 – there is also the gap up from 2/7 that has gone unfilled as well.
- The biggest technical support level is the strength SPX found from the trend line that started off of the August ’13 lows.
- The Market doesn’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:
- Closed out PH at 124.31 on Friday for a 4.8% gain.
- Closed out CT at 27.53 on Friday for a 3.2% gain.
- Closed out AGCO at 54.16 on Friday for a 2.7% gain.
- Added 1 new short position on Friday.
- Remain long CTSH at 104.19, MAN at 78.29.
- Remain short JCI at 48.90
- Will look to add 1-2 new additional position today.
- Long 20% / Short 20% / Cash 60%
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
