• SP 500 Market Analysis 3-24-14

Pre-market update:

  • Asian markets traded -0.3% lower.
  • European markets are trading 1.4% higher.
  • US futures are trading 0.7% higher ahead of the market open. 


Economic reports due out (all times are eastern): ICSC-Goldman STore Sales (7:45), Redbook (8:55), FHFA House Price Index (9), S&P Case-Shiller HPI (9), New Home Sales (10), Consumer Confidence (10), Richmond Fed Manufacturing Index (10), State Street Investor Confidence Index (10)

Technical Outlook (SPX):

  • 5th straight day where price has tested 1873 and failed to break through. Yet again it led to a sell-off immediately thereafter. 
  • Volume was strong  yesterday but not nearly as strong as what we saw on Friday though. 
  • The rising trend-line off of the February lows was breached with yesterday’s sell-off. 
  • Yesterday saw the 10-day moving average cross below the 20-day moving average – something that hasn’t been seen since the pullback that started on 1/23. 
  • 30- minute chart on SPX is still very choppy but still sports a double top pattern. 
  • Bears need to set their aim towards pushing price below 1839. That would drastically alter SPX landscape. 
  • March has been stuck in a relatively tight trading range of about 49 points. At this juncture, with all the back and forth that I’ve seen, it needs to do what it can to separate from the pack. 
  • Consolidation of the market of late is best seen through the weekly chart of SPX
  • The biggest technical support level is the strength SPX found from the trend line that started off of the August ’13 lows. 
  • The Market doesn’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:

Chart for SPX:

SP 500 Market Analysis 3-24-14

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