• SP 500 Market Analysis 12-19-14

Pre-market update:

  • Asian markets traded 2.0% higher.
  • European markets are trading 0.6% lower.
  • US futures are trading 0.1% higher ahead of the market open. 


Economic reports due out (all times are eastern): Kansas City Fed Manufacturing Index (11)

Technical Outlook (SPX):

  • A second day in a row of immense buying which totals about 89 points in just two days for SPX. 
  • To say the least the Santa Claus rally has begun. 
  • There is a very good chance we see this rally push hard into the end of the year. 
  • SPX reclaimed the 10 and 20-day moving averages yesterday, and has little resistance overhead. 
  • Volume fell off a bit but was still well above average levels. 
  • SPX 30 minute chart shows a market in full breakout mode
  • T2108 (% of stocks trading above 40-day moving average) rose 24% to 46.51% and shows immense room for the market to still run into the the end of year. 
  • VIX dropped 13.6% down to 16.8. 
  • SPX very well could challenge the market for new all time highs in the week to come. 
  • 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 12-19-14

You Might Like

  • fading the gap

    Fading the Gap: How Large Overnight Moves in SPY and QQQ Play Out During the Trading Day

  • how to trade a bear flag

    How to Trade a Bear Flag

  • Technical Analysis vs Market Conditions

    Technical Analysis vs Market Conditions: How to Know What’s Affecting Your Trades