• SP 500 Market Analysis 1-2-15

Pre-market update:

  • Asian markets traded 0.6% lower.
  • European markets are trading 0.2% lower.
  • US futures are trading 0.1% higher ahead of the market open. 


Economic reports due out (all times are eastern): PMI Manufacturing (8:58), ISM Manufacturing Index (10), Construction Spending (10)

Technical Outlook (SPX):

  • SPX closed out 2014 by shattering a key short-term support level at 2078.
  • SPX finished below the 5-day moving average and 10-day moving average. 
  • Look for potential support at the 20-day moving average today. 
  • Volume was extremely weak last week as is the norm during holiday trading. I would suspect that today will be more of the same with next week resuming normal volume levels. 
  • VIX rose a whopping 20.6% to 19.20. 
  • That whole saying about, “As January goes, so goes the year” has an 89.1% accuracy to it. 
  • SPX 30 minute chart shows the rollover that was discussed in Wednesday’s Trading Plan. 
  • Not a large decline in the T2108 (% of stocks trading above the 40-day moving average) as it only dropped 5.6% down to 49.5. 
  • 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 FB on Wednesday for a 1.2% gain. 
  • Added one new position to the portfolio on Wednesday. 
  • Will consider adding 1-2 new positions today. 
  • Remain long MXIM at 31.45, CMG at 665.48, AAL at 51.26.
  • 40% long / 60% 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 1-2-15

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