• SP 500 Market Analysis 10-3-14

Pre-market update:

  • Asian markets traded 0.4% higher.
  • European markets are trading 1.0% higher.
  • US futures are trading 0.5% higher ahead of the market open. 


Economic reports due out (all times are eastern): Employment Situation (8:30), International Trade (8:30), PMI Services Index (9:45), ISM Non-Manufacturing Index (10)

Technical Outlook (SPX):

  • SPX had a hefty bounce yesterday that looks to continue into today. 
  • Russell was the first index to bottom, after a long and extended sell-off that saw RUT test the bottom end of its year long range. 
  • This very well could be a bottom similar to what we saw at the lows in August. 
  • SPX and the market in general is very oversold at this point and prime for an extended bounce. 
  • If this is simply a dead cat bounce, look for some resistance to take place at around 1978 on SPX. 
  • SPX still in a strong downtrend on the 30 minute chart. 
  • VIX dropped 3.3% down to 16.16. 
  • 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 Trades:

Chart for SPX:

SP 500 Market Analysis 10-3-14

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