• SP 500 Market Analysis 10-2-14

Pre-market update:

  • Asian markets traded 2.3% lower.
  • European markets are trading 0.4% lower.
  • US futures are trading 0.3% lower ahead of the market open. 


Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30), Jobless Claims (8:30), Factory Orders (10), EIA Natural Gas Report (10:30)

Technical Outlook (SPX):

  • Another significant plunge yesterday sending the market down another 1.3%. 
  • There is some support that may be found at 1920 today on SPX should it continue its free-fall. 
  • Russell at a year long key support level at 1083. 
  • It is dangerous to get short at these levels as there is a strong possibility of a market bounce, considering how oversold the market is. 
  • T2108 measures the % of stocks trading above the 40-day moving average. Currently that number sits at 17 which is the lowest its been since June of 2013. Historically, this is the zone where bounces take place at. 
  • Volume the last two days on SPX has been huge. 
  • Rising trend-line off of the December 2012 lows was broken yesterday. 
  • Despite the major sell-off yesterday, VIX was only up 2.5% to 16.71.
  • 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 10-2-14

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