• SP 500 Market Analysis 7-30-15

Technical Outlook:

  • SPX has a solid day yesterday of follow through on the prior day’s bounce action. 
  • FOMC Statement had only a minimal impact on the market yesterday. 
  • Rather unusual for FOMC days, was the average volume reading on all the indices. 
  • Facebook (FB) earnings is having a slight negative impact on the market in the premarket trading. 
  • With yesterday’s bounce, it becomes more likely that SPX is positioning itself for another test of all-time highs. 
  • At this point, SPX has re-captured all of the significant moving averages and possibly adding a higher-low on the daily chart. Even better, on the Nasdaq, there is a higher-high and now a higher-low established. 
  • VIX tested that key support level, albeit briefly, yesterday. Key level where the reversals occur at. 
  • Bears need to kill this rally, and the only way they can do that is by pushing the market back below Monday’s lows and the 200-day MA. 
  • Mild bounce on the T2108 (% of stocks trading above the 40-day moving average). Rising 17% to 33.6%. 
  • At this point, I’m concerning myself with only one resistance level overhead and that is the 2129-2134 price level. That appears to be the dominant resistance level plaguing this market from moving higher and out of the current range. 
  • Even with the sell-off of late, SPX still remains range bound and directionless, with the best opportunities (and only) coming from timing the tops and bottoms of each short-term reversal. \
  • My biggest ongoing concern with the market right now is the inability to establish new, clear-cut all-time highs that leads to an expansion of price as well. Instead SPX gets bogged down in the 2120-2130’s range and reverses course each time. 


My Trades:

  • Did not add any new positions yesterday. 
  • Did not close out any long positions yesterday. 
  • 40% Long / 60% cash. 
  • Remain long: COST at 144.57, AAPL at 124.35, UPRO at 68.26, QLD at 77.84.
  • If the market shows a willingness to start moving higher again today, I’ll add 1-2 new positions.
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 7-30-15

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