Pre-market update:

  • Asian markets traded 0.6% lower.
  • European markets are trading 1.0% higher. 
  • US futures are trading 0.3% higher ahead of the market open. 

Economic reports due out (all times are eastern): 
GDP (8:30), Jobless Claims (8:30), EIA Natural Gas Report (10:30), Consumer Credit (3)

Technical Outlook (SPX):

  • Yesterday continued the 9th straight day of consolidation in the SPX (since 10/25). Today's opening gap threatens to break the consolidation and move to new all-time highs. 
  • The most important level for bears to change the market in their favor would be a push below 1740. If they can do that, then a new wave of selling will kick in. 
  • However, its my opinion, that price level won't be breached anytime soon without heavy news to push it. 
  • 30- minute chart on SPX shows a very chopping trading environment. 
  • VIX breaking own to 12.67 which bodes well for the broader markets. 
  • Dip buyers remain strong in the face of market weakness. 
  • Over the last 9 days the market has been consolidating and looks poised to breakout yet again to new highs. 
  • SPX off of overbought levels. 
  • The 10-day moving average continues to provide support for the SPX and the dip-buyers to rally off of. 
  • Markets don't care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

  • Did not close out any positions on Wednesday.
  • Increased my long exposure with two new positions yesterday.  
  • Currently 60% long / 40% cash.  
  • Will strongly consider adding 1-2 new long positions today. 
  • Current Longs: ALKS at 35.49, GES at 31.55, CHS at 17.30 and JOY at 57.36.
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 11-7-13

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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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