• SP 500 Market Analysis 8-14-15

Technical Outlook:

  • SPX had a marginal rally yesterday unfolding until the final hour of trading wiped out all the day’s progress and finish lower on the day. 
  • Essentially SPX is stuck in a triangle pattern with the bottom forming off of the July lows and the descending resistance starting from the July highs. Since then the market has been plagued with higher-lows and lower-highs. 
  • SPY volume yesterday was extremely weak and only about half of what was seen from Wednesday. 
  • VIX dropped 0.9% down to 13.49. 
  • T2108 not moving anywhere fast (% of stocks trading above their 40-day moving average) as it finished 2% lower to 33.3%. 
  • A break below the triangle would be rather bearish for this market, particularly with a close below the 200-day MA. 
  • SPY 30 minute chart shows a somewhat disfigured inverse head and shoulders pattern forming since August 11th. 
  • Continue to watch the 200-day moving average which remains stubbornly strong against the recent selling winds of the market. 
  • A view is emerging that a rate hike in September is off the table. 


My Trades:

  • Added one new long positions yesterday. 
  • Closed out FB yesterday at 93.67 for a 0.8% gain. 
  • 40% Long / 60% cash. 
  • Remain long: SBUX at 56.37, UPRO at 67.17, AAPL at 114.64
  • Bulls must show that it can establish a market rally and hold on to those gains. It will be very hard for me to add additional capital to the market if the bulls don’t achieve this.  
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 8-14-15

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