Pre-market update (updated 8:30am eastern):
- Europe is trading 0.4% higher.
- Asian markets traded in a wide range from -0.2% up to +0.8%.
- US futures are slightly lower ahead of the open.
Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30am), Jobless Claims (8:30am), Quarterly Services Survery (10am), EIA Natural Gas (10:30am)
Technical Outlook (SPX):
- SPX finished yesterday with what can be considered to be a doji-like candle pattern - showing indecision by the markets at this juncture.
- The 50-day moving average is offering a strong showing of resistance for the SPX over the last 5 trading sessions.
- It is very possible that we could continue pulling back off of recent highs. You have recent support at the 200-day moving average which could offer some level of buying for the markets.
- Volume saw a slight uptick yesterday compared to what we've seen recently.
- 8-day EMA continues to provide support for the markets in the short-term.
- We are retesting the neckline of the triple-top on the SPX daily. Heavy resistance at this level for now.
- We are off of overbought conditions in the short-term.
- 30-minute chart looks distributive and has the potential to breakdown further.
- Ideally for the bulls, if price action can close at or above 1429, the downtrend off of the September highs would be officially done and over with, as a new higher high would be established for the first time.
- Next level of price resistance rests at 1437.
- Fiscal Cliff discussions continues to dominate the news.
- SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
- SPX currently has recaptured the 10, 20, and 200-day moving averages.
- VIX is back below 17.
My Opinions & Trades:
- Sold VRX at $57.81 for a 3.0% gain.
- Bought ARRY at $3.67
- I'll be looking to add 1-2 new positions to the portfolio today.
- Here is my real-time swing-trading portfolio and past-performance
Chart for SPX: