• SP 500 Market Analysis 11-5-13

Pre-market update:

  • Asian markets traded 0.1% higher.
  • European markets are trading 0.6% lower. 
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Redbook (8:55), ISM Non-Manufacturing Index (10)

Technical Outlook (SPX):

  • SPX continues its bounce off of the 10-day moving average yesterday. 
  • More weakness than what we are accustomed to seeing in the futures prior to the market open today. Traditionally, SPX has a difficult time holding the gap down, and instead it often times leads to a bounce higher towards breakeven. 
  • Today’s weakness could provide a good opportunity to add new long positions to their portfolio. 
  • Volume yesterday fell off dramatically. 
  • It is shaping up to where we are trading in a consolidated pattern since 10/25 with a range of 1752 and 1775. 
  • It’s a strong indication that this market still wants to move higher in the coming days. 
  • SPX actually trying to come off of overbought market conditions. 
  • If the bears are going to control this market, it needs to take out the 1740 level. 
  • Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

Chart for SPX:

SP 500 Market Analysis 11-5-13

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