• SP 500 Market Analysis 4-29-13

Pre-market update (updated 9am eastern):

  • European markets are trading 0.4% higher.
  • Asian markets traded 0.2% higher.
  • US futures are moderately higher. 

Economic reports due out (all times are eastern): Personal Income and Outlays (8:30am), Pending Home Sales (10am), Dallas Fed Manufacturing Survey (10am)

Technical Outlook (SPX):

  • After trading for five straight days higher, it finally gave back some gains in a very controlled manner. 
  • Volume was extremely light as well, which bodes well for the bulls. 
  • 1565 remains a key rising support level that was formed off of the channel that started back in November. 
  • We are short-term overbought here. 
  • Bears will want to prevent this market from reaching new all-time highs, and instead form a double top in this market. 
  • The market may be entering a larger/wider consolidation range here between 1597 and 1536. 
  • 1538/6 remains the key level for the bears to push this market below, while SPX managed to break the short-term resistance of 1574 yesterday that likely clears the way for a retest of all-time highs. 
  • SPX well above its 10 & 20-day moving averages now which signifies short-term bullishness. 
  • VIX settled in under 14. 
  • Markets don’t care about the economy. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 
  • Both channels (July October 2012) and the price channel we are currently in are very similar in nature. 
  • We haven’t seen a market pullback in excess of 4% since October/November time-frame. 

My Opinions & Trades:

Chart for SPX:

SP 500 Market Analysis 4-29-13

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