• S and P 500 Market Analysis 11-29-12

Pre-market update (updated 7am eastern):

  • Europe is trading 0.8% higher.
  • Asian markets traded 0.8% higher. 
  • US futures are moderately higher.  

Economic reports due out (all times are eastern): Jobless Claims (8:30am), GDP (8:30am), Corporate Profits (8:30am), Pending Home Sales (10am), EIA Natural Gas Report (10:30am), Kansas City Fed Manufacturing Index (11am)

Technical Outlook (SPX):

  • A very whipsaw like day until the afternoon rolled around and broke up higher, squeezing shorts out of their positions. 
  • Fiscal Cliff discussions continues to dominate the news. 
  • GDP will weigh heavily on the market today. 
  • SPX, in the short-term, remains overbought. 
  • We closed just a shade below 1410 yesterday, and in order for this rally to put ‘dead-cat bounce’ beliefs to rest, the SPX must close above the critical price level. 
  • Short-term, a break below Monday’s lows, should accelerate the pace of selling for the bears. 
  • In general, I’m finding that there are a lot of mixed signals, so the best advice is to let the market confirm direction on its own and not front run the market as a result. 
  • SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
  • After 1410, look for the next level of resistance to kick in around 1437. 
  • SPX currently has recaptured the 10, 20, and 200-day moving averages. 
  • VIX remains at 16. 

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 11-29-12

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