• S and P 500 Market Analysis 1-10-13

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

  • European markets are trading 0.2% higher.
  • Asian markets traded 0.5% higher.. 
  • US futures are trading slightly higher ahead of the opening bell.. 

Economic reports due out (all times are eastern): Jobless Claims (8:30am), Wholesale Trade (10am), EIA Natural Gas Report (10:30am)

Technical Outlook (SPX):

  • Slow trickle down of selling yesterday after opening strong. 
    • We are opening up yet again in a very similar manner. 
  • While we trade against the upper channel, the SPX is not selling off as a result of testing it, instead it is consolidating at the highs, which comes across as being very bullish. 
  • There really isn’t any support found on any of the major moving averages. 
  • With the consolidation we’ve seen over the last five days, we have managed to see the SPX find some breathing room from the upper Bollinger Band. 
  • We’ve also managed to come off of ‘short-term’ overbought conditions. 
  • Volume remains steady. 
  • Notice the channel that we are currently trading in off of the November lows, and how recent selling has come after touching the upper band. 
  • For the bulls, a pullback to 1448ish would keep things very bullish, but there remains the possibility that we could pullback to the trend-line off of those November lows. That price level would be somewhere around 1408 to 1415 as it stands currently. 
  • VIX rose for the first time in seven trading sessions. It remains under 14.
  • There’s really no significant level of resistance for the market above 1466 until you get to 1501. 
  • It will take a significant move, but below 1398, the trend will be bearish. 
  • Be aware of upcoming news events and discussions that will permeate the markets: Debt Ceiling Debate, Fiscal Cliff Part II, Employment Recovery. 
  • There is still a huge gap on the SPY chart that ultimately needs to be filled. 
  • 30-minute chart looks ‘toppy’.

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 1-10-13

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