• SP 500 Market Analysisc 10-20-14

Pre-market update:

  • Asian markets traded 2.7% higher.
  • European markets are trading 1.1% lower.
  • US futures are trading 0.3% lower ahead of the market open. 


Economic reports due out (all times are eastern): None

Technical Outlook (SPX):

  • Strong follow through on Friday following Thursday’s bounce action. 
  • Today’s open is being weighed down by weakness in Europe in addition to IBM reporting a significant earnings miss. 
  • Volume remained strong on SPX during the bounce. 
  • Bulls, must fade the gap down if they are to keep this market from starting the next leg down. 
  • SPX has been rallying nicely with a series of higher-highs and higher-lows on the 30 minute chart. To keep this going it will need to hold 1877 this morning. 
  • If the rally continue there is plenty resistance hovering around 1910-1920 area. ‘
  • RUT was surprisingly down on Friday despite SPX being up over 1% – a major concern for traders throughout the day. 
  • VIX dropped 12.7% down to 22. 
  • 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 Analysisc 10-20-14

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