• SP 500 Market Analysis 5-12-14

Pre-market update:

  • Asian markets traded 0.3% higher. 
  • European markets are trading 0.3% higher.
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): Treasury Budget (2)

Technical Outlook (SPX):

  • Another scenario on Friday where the dip buyers rushed to the aide of the bulls and pushed the market back into positive territory. 
  • Since 4/17, SPX  has been stuck in a 2% trading range. 
  • 1883 continues to be the point of interest fo the market and the area where bulls are unable to close above. 
  • The bulls have no true momentum really with the only true edge they hold is the fact that the bears are unable capitalize on it and push the market lower. 
  • No significant or identifiable patterns on the 30-minute SPX pattern. 
  • VIX dropped off 3.8% and is now at recent lows of 12.92. 
  • Before the momentum can really turn in the bear’s favor they need to push price below 1850.  
  • In this market, you have to be aggressive with the gains. Take them quick, and don’t expect them to last. 
  • 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 Opinions & Trades:

Chart for SPX:

SP 500 Market Analysis 5-12-14

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