• SP 500 Market Analysis 10-6-14

Pre-market update:

  • Asian markets traded 0.2% lower.
  • European markets are trading 0.8% lower.
  • US futures are trading 0.4% lower ahead of the market open. 


Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Redbook (8:55), Consumer Credit (3)

Technical Outlook (SPX):

  • Weakness heading into the open followed by rejection at 1978 on SPX yesterday is a problem for this market going forward. 
  • Rejection on the underside of 1978, then the heavy selling that followed, indicates that the two-day rally off of the lows may have only been a dead cat bounce and nothing more. 
  • SPX is setting nearly perfectly for another leg down. 
  • VIX back over 15.
  • SPX 30min chart indicates the rally failed at key resistance, and even formed a head and shoulders pattern which is confirmed with today’s price action. 
  • 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 10-6-14

You Might Like

  • South Korea and its impact on the US stock market.

    South Korea: The Hidden Driver of US Tech Volatility

  • 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