• SP 500 Market Analysis 12-3-14

Pre-market update:

  • Asian markets traded 0.2% lower
  • European markets are trading flat.
  • US futures are trading flat ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), ADP Employment Report (8:15), Productivity and Costs (8:30), PMI Services Index (9:45), ISM Non-Manufacturing Index (10), EIA Petroleum Status Report (10:30), Beige Book (2)

Technical Outlook (SPX):

  • SPX bounced off of support yesterday as noted in the chart below. 
  • Some resistance at 2065-2066, most notably seen on the 30-minute SPX chart.
  • Volume saw a dip yesterday from strength on Monday. 
  • A sell-off here that takes price below 2030 would become very problematic for the bulls. 
  • SPX managed to reclaim the 5-day and 10-day moving averages yesterday. 
  • The 20-day moving average is closing in on and converging with the 5-day and 10-day moving averages. 
  • VIX dropped 10% down to 12.85.
  • 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:

  • Added one additional long position yesterday. 
  • Did not close out any positions yesterday. 
  • Will consider adding 1-2 new positions today. 
  • Remain long SBUX at 78.47, TGT at 72.11, SDS at 22.35.
  • 30% long / 10% short / 60% cash. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 12-3-14

    You are unauthorized to view this page.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind