• SP 500 Market Analysis 12-4-14

Pre-market update:

  • Asian markets traded 1.1% higher.
  • European markets are trading 0.2% higher.
  • US futures are trading flat ahead of the market open. 


Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30), Jobless, Claims (8:30), EIA Natural Gas Report (10:30)

Technical Outlook (SPX):

  • SPX made a new all-time closing high yesterday. Key price level for SPX to hold is 2049, as a break below it would create a double top scenario for the market in the short-term. 
  • Breaking 2049 would also result in a break of the 20-day moving average as well. 
  • SPY volume levels continue to lighten, with levels similar to what we saw during the week of Thanksgiving. 
  • Resistance on SPX 30 minute chart was pushed through yesterday’s rally. 
  • VIX dropped another 3% to 12.47. 
  • T2108 recovery not nearly as good as the SPX recovery over the last 2 days. 
  • The 20-day moving average is closing in on and converging with the 5-day and 10-day moving averages. 
  • 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:

  • Sold TGT yesterday at 72.80 for a 1.0% gain. 
  • Sold DHI yesterday at 25.16 for a 1.0% loss. 
  • Sold SDS yesterday at 21.93 for a 1.8% loss. 
  • Will consider adding 1-2 new positions today. 
  • Remain long SBUX at 78.47
  • 30% long / 70% cash. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 12-4-14

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