• SP 500 Market Analysis 2-4-15

Pre-market update:

  • Asian markets traded 1.4% higher.
  • European markets are trading 0.3% lower.
  • US futures are trading 0.2% lower ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), ADP Employment Report (8:15), Treasury Refunding Announcement (8:30), PMI Services Index (9:45), ISM Non-Manufacturing Index, EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

  • A strong 1.4% rally yesterday to close right at descending resistance off the December highs as shown in the chart below. 
  • Two key points for SPX bulls to break through today and the days ahead. 1) break the aforementioned resistance and 2) break price resistance at 2064.
  • Volume continues to remain strong over the past two days. 
  • VIX dropped 10.9% to 17.32. 
  • Massive move in T2108 (% of stocks trading above their 40-day moving average) as it rose 26.7% to 62.1%. This is the highs level reached since 12/3/14.
  • Much of the rally is being propelled by the rally in oil as it has managed to move 17.6% in the last three days. 
  • 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:

Chart for SPX:

SP 500 Market Analysis 2-4-15

    You are unauthorized to view this page.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind