• SP 500 Market Analysisc 6-12-15

Technical Outlook:

  • SPX is sporting a head and shoulders pattern possibly on the daily chart. The first time I have seen a pattern of any kind in the past three months. See chart below. 
  • The pattern is not confirmed yet, but the right shoulder is currently forming and the pattern as a whole confirms at 2072. 
  • VIX tested the lower support level off of the July lows from last year. This is an area where the market consistently sells off and the VIX bounces at. 
  • SPX downtrend off of the May highs held up perfectly yesterday. This can be better seen on the 30 minute chart of SPX. 
  • T2108 chart (% of stocks trading above the 40-day moving average) suggests that the move over the last two days could be nothing more than a dead cat bonce. 
  • RUT looks ready to challenge its all-time highs again. after breaking out of 3 weeks of consolidation. 
  • 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:

  • Added one short position yesterday. 
  • Did not close out any positions yesterday. 
  • 20% short / 80% cash. 
  • Remain short XYL at 36.16.
  • I’ll consider adding 1-2 new short position to the portfolio today. May consider playing to the long side if we get a heavy bounce today. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysisc 6-12-15

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