• SP 500 Market Analysis 10-10-14

Pre-market update:

  • Asian markets traded 1.5% lower.
  • European markets are trading 0.8% lower.
  • US futures are trading 0.1% lower ahead of the market open. 


Economic reports due out (all times are eastern): Import and Export Prices (8:30), Treasury Budget (2)

Technical Outlook (SPX):

  • Another huge reversal yesterday, wiping out the bull gains from the FOMC minutes and then some. 
  • Look for support at 1925 to be tested.
  • Also, as noted in the chart below a bounce opportunity off of the rising support (dashed line) at 1921. 
  • Finally critical support would be if SPX breaks 1904 and thereby creates a lower-low. 
  • SPX 30- minute chart shows the index at critical support from the past few days. 
  • One of the biggest moves in the VIX in a long time, rising 24% to 18.76 and the highest since February. 
  • Also the 200-day moving average could come in to play to day – SPX has not traded below in 476 days. 
  • 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 10-10-14

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