• SP 500 Market Analysis 1-13-15

Pre-market update:

  • Asian markets traded 0.1% lower.
  • European markets are trading 1.1% higher.
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): Redbook (8:55), JOLTS (10), Treasury Budget (2)

Technical Outlook (SPX):

  • SPX continued upon Friday’s selling giving up another 16 points. 
  • Now the index is back at the rising trend line that started off of the October lows. This trend line has already been compromised once which makes it more vulnerable going forward. 
  • SPX lost the 50-day moving average yesterday that it had previously managed to hold on Friday. 
  • The biggest threat to the market would be a break of the 1/6 lows which would obviously set up a test of the December lows next. 
  • In essence you have a market that is on some very shaky ground here, particularly with oil that continues to hold the market down. 
  • VIX rose another 11.7% to 19.60. 
  • SPX is sporting a massive head and shoulders pattern that is also showing up on the daily chart too. 
  • This provides a huge opportunity for the bears to stomp on this current bounce and send price back down below 1/7 lows at 1992. In doing so, it would do something that it couldn’t do on the two previous bounces and that is create a dead cat bounce. 
  • By breaking the 1/7 lows, SPX would create a lower-low and lower-high. 
  • Intraday sell-offs in oil continues to dramatically affect price action of stocks in general. 
  • 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:

  • Sold AGN yesterday at 219.38 for a 1.5% gain. 
  • Sold WFM yesterday at 50.59 for a 1.3% gain. 
  • Sold EBAY at 55.45 for a 0.4% loss. 
  • Added one new long position yesterday. 
  • Added two new short positions yesterday. 
  • Will consider adding 1-2 new positions today. 
  • 10% Long / 20% Short / 70% 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 1-13-15

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