Pre-market update (updated 9am eastern):

  • Europe is trading -0.4% lower. 
  • Asian markets traded -0.3% lower. 
  • US futures are trading slightly down ahead of the bell. 

Economic reports due out (all times are eastern): Treasury STRIPS (3pm)

Technical Outlook (SPX):

  • SPX found some momentum to close higher on Friday despite being clearly overbought at this point. 
  • Post Recovery highs are at 1465 on a closing basis. SPX on Friday closed one point above it at 1466. 
  • There's really no significant level of resistance for the market above 1466 until you get to 1501. 
  • Bears need to work on getting the SPX back below 1455 for starters and ultimately back below 1430. 
  • It will take a significant move, but below 1398, the trend will be bearish
  • Be aware of upcoming news events and discussions that will permeate the markets: Debt Ceiling Debate, Fiscal Cliff Part II, Employment Recovery. 
  • We are hitting the upper band of a well-defined channel that the SPX has been trading in since the November lows. 
  • There is still a huge gap on the SPY chart that ultimately needs to be filled. 
  • 30-minute chart looks extremely over-extended. 
  • The consolidation, in a perfect world, shouldn't pullback further than 1448, where there is minor support
  • VIX currently is under 14 which is extraordinarily rare. 
  • Trend-line has dramatically flattened off of the November lows. 
  • SharePlanner Reversal Indicator confirmed a bearish reversal to come. 

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 1-07-13

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small-ryan-malloryRyan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>

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