Pre-market update (updated 9am eastern):

  • Europe is trading 0.5% higher. 
  • Asian markets traded 0.6% higher. 
  • US futures are trading slightly higher. 

Economic reports due out (all times are eastern): Jobless Claims (8:30am), New Home Sales (10am), Consumer Confidence (10am)

Technical Outlook (SPX):

  • SPX sold off for the fourth time in the last five trading sessions. 
  • We finished below all the moving averages except for the 200-day moving average. 
    • Last time we dipped below the 20-day moving average, we popped right back above it the following day. 
  • The critical level of 1411 still holds, but cannot afford to give up much more ground before allowing this market to slip in bearish territory. 
  • SPX is quickly falling back into oversold market conditions in the short-term. 
  • Weekly chart still looks bearish overall with the failure at overhead resistance keeping the market from progressing higher. 
  • The 30-min chart actually doesn’t look too bad as it still shows a clear set of higher-highs and higher-lows. 
  • 1445-1448 remains the key level for the bulls to achieve and break through and put this market decisively back in their corner. 
  • Declining, overhead resistance exists off of the September highs. To break this, SPX will need to clear 1445. 
  • Will see continued low levels of volume from now  until the end of the year. 
  • The thought is, if the House can’t pass their own Plan B, how will it ever pass a compromise between between Boehner and Obama. 
  • VIX closed at $19.48 which is the highest close since 7/24.

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 12-27-12