Pre-market update (updated 9am eastern):

  • European markets are trading 0.6% higher. 
  • Asian markets traded 0.8% higher.
  • US futures are trading slightly lower.

Economic reports due out (all times are eastern): Producer Price Index (8:30am), Current Account (8:30am), Industrial Production (9:15am), Consumer Sentiment (9:55am)

Technical Outlook (SPX):

  • SPX  bounced perfectly yesterday off of the 50-day moving average and the lower Bollinger Band. 
  • Volume also showed a slight uptick yesterday compared to previous, recent trading sessions. 
  • Once again, the key level for the SPX to trade above is 1648, or Monday’s highs. Unless it can do this, any upward move is utterly meaningless. 
  • Same is true to the downside, unless it can break last Thursday’s lows, there is nothing here to get excited about here. 
  • 30-minute SPX chart shows key resistance at the 1639 level. 
  • SPX bounced right off the rising uptrend, That rising trend-line today now becomes 1617 today. 
  • VIX dropped off quite a bit – all the way down into the mid-16’s. 
  • Strong correlation between US Market’s and the Japanese markets right now, as the latter is in the midst of a significant sell-off since 5/22. 
  • There is the potential that Monday’s highs marked the first lower-high of 2013. 
  • Key price support rests at 1601. 
  • Markets don’t care about the economy. 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 6-14-13

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