• SP 500 Market Analysis 2-23-15

Technical Outlook (SPX):

  • Sixth straight day where SPX spent the majority of the day digging itself out of the hole, yet managing to finish near break even or higher. 
  • Futures are pointing slightly higher for /ES which is a rarity these days. 
  • Volume was off yesterday and well off of the previous day’s volume reading. 
  • VIX showed very mild strength to finish 1.8% at 14.56. 
  • SPX uptrend remains in place on 30 minute chart, with a very nice bull flag formed yesterday. A break above 2110 would confirm the pattern. 
  • Yesterday we saw the 5-day moving average hold solid after testing it intraday at the day’s lows. 
  • Oil broke to the downside and out of the recent range yesterday. Be careful about any long positions connected to oil. 
  • T2108 (% of stocks trading above the 40-day MA) shows that the recent consolidation may see an upside break which would be healthy for the market. 
  • 2126 on SPX represents resistance at the upper channel band. 
  • A pullback on SPX would not be able to drop below 2065 level without threatening key price support and the integrity of the current uptrend. 
  • Russell breakout out perfectly above the box range it has been in for over a year now. 
  • Weekly SPX chart shows a well constructed bullish-flag breakout taking place. 
  • Monthly looks equally impressive. 
  • Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
  • 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 out HON at $104.15 for a 1.6% gain. 
  • Closed out LULU at $66.15 for a 0.8% loss. 
  • Added one new position on Monday. 
  • Will be increasing the stop-losses of a number of positions today. 
  • 60% Long / 40% cash. 
  • Will look to add another new long position today, but will likely result in taking profits in an existing position. 
  • Remain long ADBE at 73.66, MA at 86.29, MSFT at 43.03, BA at 149.84, SWKS at 83.33.
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 2-23-15

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