Pre-market update:

  • Asian markets traded 0.1% higher.
  • European markets are trading 0.2% lower.
  • US futures are trading flat ahead of the market open. 


Economic reports due out (all times are eastern): ICSC Goldman Store Sales (7:45), Redbook (8:55)

Technical Outlook (SPX):

  • Disappointing day for SPX yesterday as it failed to hold the breakout level that it had obtained on Friday. 
  • Despite drifting back in to the consolidated area of trading that it has been in now for 10 days, the market hasn’t showed any signs of breaking down. 
  • Volume was light on SPY and the SPY never confirmed the move made on Friday by SPX. 
  • SPX 30-minute chart shows that there may be a lot of distribution happening underneath the surface. 
  • SPX is no longer overbought. 
  • While consolidation can be frustrating for traders it is very typical to see this kind of price action, particularly in the wake of a +100 point move on SPX. 
  • The dip buyers are still lingering and don’t show any signs of disappearing. 
  • Today’s big event is the Apple conference. 
  • Gap ups have been very difficult to hold from an intraday perspective. In fact the most bullish market for trading has been when there is a slight gap down at the open. 
  • VIX rose 4.7% to 12.66.
  • If SPX dips below 1990, the likelihood of the market rolling over dramatically increases. 
  • Right now is not the time to get short – wait first for SPX to break a key price level. 
  • At the moment there is little to no fear in this market. That can always change, but no major themes in the market that can cause problems for it right now. 
  • A lot of nontraditional traders are starting to get interested in this stock market which usually starts to show that there is too much “froth” in the market. 
  • 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 TJX at $60.60 for a 1.6% gain.
  • Added one additional long position to the portfolio yesterday.  
  • Remain long CTXS at 69.96, FB at 75.65, MAS at 23.72, MSFT at 45.49..
  • Will look to add 1-2 new long position today. 
  • 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 9-9-14