• SP 500 Market Analysis 12-15-14

Pre-market update:

  • Asian markets traded 1.3% lower.
  • European markets are trading 0.3% lower.
  • US futures are trading 0..9% higher ahead of the market open. 


Economic reports due out (all times are eastern): Empire State Manufacturing Survey (8:30), Industrial Production (9:15), Housing Market Index (10)

Technical Outlook (SPX):

  • Massive gap up this morning on SPX in conjunction with a near test of the 50-day moving average on Friday. 
  • Price will immediately test the underside of the broken trend-line from February 2013. 
  • Unless proven otherwise, this gap higher should be treated as a dead cat bounce. 
  • Rarely are bottoms formed with large gap ups. 
  • VIX rose 5% to 21.08 on Friday. 
  • SPX 30 minute chart shows a series of lower-highs and lower-lows in place. 
  • Critical support at 2030 was broken on Friday. 
  • T2108 (% of stocks trading above the 40-day moving average) fell another 19.6% down to 35.82. 
  • 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:

  • Added four new positions on Friday. 
  • Closed out YHOO at 50.43 for a 1.9% loss. 
  • Will consider adding 1-2 new positions today. 
  • Remain long AAPL at 112.74, SDS at 22.55.
  • 10% long /  50% Short / 40% 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 12-15-14

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