• SP 500 Market Analysis 4-23a-15

Technical Outlook:

  • Excellent day yesterday for bulls as it appeared in the early going that price would end up resuming the move down to rising support down, until the dip-buyers came in and pushed it back to its recent highs. 
  • However, 2111 remains a formidable level of resistance and needs to get taken out today. 
  • 5 & 10 day moving averages have converged nicely together and offering a level of support below yesterday’s opening price. 
  • SPY downtrend off of the February highs has been broken, and is consolidating nicely below $211.00. Break above this price, and the bulls should gain a strong hold on this market. 
  • Price pattern on SPY over the last three months is a bit of a inverse head and shoulders pattern. 
  • Volume was strong than the previous day for SPY but still below average. 
  • VIX right back at long-term support closing down 4.1% at 12.71. 
  • SPX 30 minute chart shows a clear picture of price struggling to break through descending resistance at 2111.
  • 2080 needs to hold on SPX following the uptrend off of the uptrend from the 10/16/14 opening price. 
  • With Monday’s move the SPX chart has managed to break back above resistance (dotted line below). However, there is now a secondary resistance level that formed with Friday’s rejection by connecting the candle shadow tops. Resistance for this is at 2111. 
  • Bullish kicker candle patterns were formed across the board for SPY, DIA, QQQ, and IWM, during the Friday sell-off and Monday rally. 
  • 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 new long position yesterday. 
  • Did not close out any existing positions yesterday. 
  • 40% long / 60% cash. 
  • I’ll consider adding 1-2 new positions today dependent on the strength of today’s price action. 
  • Remain long: AAPL at 126.81, ETN at 68.88, IMAX at 36.69
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 4-23a-15

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