• SP 500 Market Analysis 5-29-15

Technical Outlook:

  • SPX attempted to continue the selling action seen on Tuesday, but ultimately, the dip-buyers produced enough momentum to erase about 80% of the day’s losses for the market.
  • This keeps price right at resistance at around the 2120 mark.
  • GDP came in at -0.7% today which was slightly better than what was expected. So far it has had a minimal impact on the market. 
  • Volume continues to decrease over the past two days coming in at well below average yesterday. 
  • SPX 30 minute chart doesn’t provide much to glean from as it just continues to be mired in choppiness of late. 
  • VIX barely higher yesterday at 13.31. Overhead downtrend is quickly converging on the 2014 July support level. 
  • T2108 (% of stocks trading above the 40-day moving average) Dropped 5.6% down to 42%. 
  • First objective for bears should be to break yesterday’s lows followed by a break of Tuesday’s lows. 
  • Bulls must still establish new all-time highs and expand price thereafter. 
  • The problem with the bulls making new all-time highs during the course of 2015 so far, is that once they are established, nothing else happens; there is no rally that sees a rapid expansion in price. 
  • Instead the all-time highs have been quickly sold off by the market in general.
  • Oil showing signs of breaking down again and could weigh heavily on price action of the broader market as well. 
  • We still have a higher-high in place currently with SPX, and would need to break 2067 in order to form a new lower-low. 
  • 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:

  • I did not add any new trades yesterday. 
  • I did not close out any trades yesterday. 
  • 10% short / 90% cash. 
  • Remain long: SDS (Ultrashort ETF) at 19.90.
  • I’ll consider adding 1-2 new depending on the direction and strength of the market. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 5-29-15

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