• SP 500 Market Analysis 4-26-14

Pre-market update:

  • Asian markets traded in a -0.7% lower.
  • European markets are trading 0.3% higher.
  • US futures are trading 0.2% higher ahead of the market open. 


Economic reports due out (all times are eastern): Pending Home Sales Index (10), Dallas Fed Manufacturing Survey (10:30)

Technical Outlook (SPX):

  • Friday experienced a heavy sell-off at the upper channel level that also sent price below support at 1873. 
  • 10, 20, & 50 day moving averages have converged together offering some support to Friday’s sell-off. 
  • 5-minute chart of /ES shows a significant double top heading into today’s open. 
  • In this market, you have to be aggressive with the gains. Take them quick, and don’t expect them to last. 
  • An even bigger double-top pattern on the SPX 30-minute chart has confirmed as well on Friday. 
  • Friday’s volume was much more than what we have seen in recent days. 
  • April is back in the red for the month. 
  • VIX back to trading above 14. 
  • 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 Opinions & Trades:

  • Covered LVLT at $36.65 on Friday for a 3.4% gain. 
  • Sold JOY at $60.43 on Friday for a 1.4% loss. 
  • Did not add any new positions on Friday. 
  • Will look to add 1-2 new positions today.
  • Remain short HPQ at 31.99, BAC at 16.08, ADSK at 47.60. 
  • Short 30% / 70% 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 4-26-14

You Might Like

  • South Korea and its impact on the US stock market.

    South Korea: The Hidden Driver of US Tech Volatility

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped