• Standard Poor 500 Market Analysis 12-9-12

Pre-market update (updated 8:30am eastern):

  • Europe is trading -0.4% lower.
  • Asian markets traded 0.2% higher.
  • US futures are flat ahead of the open. 

Economic reports due out (all times are eastern): No news. 

Technical Outlook (SPX):

  • Big day for the SPX on Friday, as price managed to break out o fthe bull-flag pattern we had been tracking in recent days. 
  • Volume was lighter than what we’d seen from the market in recent days. 
  • Probably the biggest accomplishment, was the SPX finishing above the 50-day moving average despite the heavy amount of resistance it has presented in the last 7 days or so. 
  • There is a larger downtrend from late October, that price action needs to break through. I don’t expect this price level to present a heavy level of resistance. 
  • Current uptrend off of the November lows is steep, but not atypical for new rallies. Overtime the up-ward trend-line will flatten out some. 
  • 8-day EMA continues to provide rising support for the markets in the short-term. 
  • We are off of overbought conditions in the short-term. 
  • Ideally for the bulls, if price action can close at or above 1429, the downtrend off of the September highs would be officially done and over with, as a new higher high would be established for the first time. 
  • Next level of price resistance rests at 1437. 
  • Fiscal Cliff discussions continues to dominate the news. 
  • SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
  • SPX currently has recaptured the 10, 20, and 200-day moving averages. 
  • VIX dropped below 16.

My Opinions & Trades:

Chart for SPX:

Standard Poor 500 Market Analysis 12-9-12

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