• SP 500 Market Analysis 4-21-15

Technical Outlook:

  • Yesterday’s rally was a strong response to the sell-off on Friday as it regained every one of the moving averages it lost, including the 5, 10, 20, and 50-day MA. 
  • Follow through today is important for the bulls, because by continuing the rally if makes it as if Friday never happened. 
  • With yesterday’s move the SPX chart has managed to break back above resistance (dotted line below). However, there is now a secondary resistance level that formed with Friday’s rejection by connecting the candle shadow tops. Resistance for this is at 2111. 
  • If today’s rally holds, then it becomes almost like the sell-off on Friday never happened. Except for the fact that it hunted out the stops of bulls across the board. 
  • Bullish kicker candle patterns were formed across the board for SPY, DIA, QQQ, and IWM. 
  • SPX 30 minute chart shows very little at this point except for the choppiness between 2075 and 2111 of late. 
  • Number one objective for the bears today will be to wipe out yesterday’s gains and get price back below the Friday’s lows. 
  • SPY volume was respectable – no issues there. Not like Friday’s, but solid nonetheless. 
  • VIX dropped 4.3% down to 13.3. 
  • 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:

  • Closed out CBI at 51.75 for a 2.2% ahead of its earnings report on Thursday. 
  • I added one additional long position yesterday. 
  • 30% long / 70% cash. 
  • I’ll consider adding 1-2 new positions today dependent on the strength of today’s price action. 
  • Remain long: AAPL at 126.81, ETN at 68.88
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 4-21-15

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