• SP 500 Market Analysis 4-1-14

Pre-market update:

  • Asian markets traded 0.6% higher.
  • European markets are trading 0.7% higher.
  • US futures are trading 0.2% higher ahead of the market open. 


Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Redbook (8:55), PMI Manufacturing Index (9:45), ISM Manufacturing Index (10), Construction Spending (10)

Technical Outlook (SPX):

  • For the 8th time in the last 10 trading sessions, the S&P 500 has tested the 1873 price level and failed to close above it. 
  • However, the bears are not capitalizing on this opportunity by driving the market lower. 
  • Instead it is simply letting the SPX hover just below this key short-term resistance level. 
  • Nice volume reading on a positive day for the first time in weeks. Likely due to end of month and quarter activities. 
  • April tends to be one of the friendliest month for the bulls. 
  • The first day of trading each of the past four months has resulted in heavy sell-offs. 
  • Potential double bottom on the SPX 30-minute chart. 
  • For the bears to turn this market in their favor, they must drop SPX price below 1839. 
  • VIX is currently trading at the bottom end of a two month range. 
  • 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 4-1-14

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