• S and P 500 Market Analysis 1-03-13

Pre-market update (updated 8am eastern):

  • Europe is trading -0.3% lower. 
  • Asian markets traded 0.6% higher. 
  • US futures are trading slightly lower ahead of the bell. 

Economic reports due out (all times are eastern): MBA Purchase Applications (7am), Challenger Job-Cut Report (7:30am), ADP Employment Report (8:15am), Jobless Claims (8:30am), FOMC minutes (2pm)

Technical Outlook (SPX):

  • We saw one of the biggest days yesterday that we’ll likely see this entire year, with the SPX trading 36 points higher and 64 points in the past two trading sessions. 
  • SPX broke through descending trend-line off of September highs. 
  • Also created a higher high in the market by breaking the previous one at 1448. 
  • The next milestone the bulls need to achieve is in breaking through 1474 which would mark a post recovery highs. 
  • Volume was above average yesterday .
  • Another barrier cleared was the October closing highs. 
  • Trend-line has dramatically flattened off of the November lows. 
  • Huge large gap up on the SPY that I highly doubt will remain unfilled. 
  • SharePlanner Reversal Indicator confirmed a bearish reversal to come. 
  • VIX dropped another 18% (dropped 21% on Monday) to finish at 14.68.

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 1-03-13

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