• SP 500 Market Analysis 10-8-14

Pre-market update:

  • Asian markets traded 1.0% lower.
  • European markets are trading 0.4% lower.
  • US futures are trading flat ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), EIA Petroleum Status Report (10:30), FOMC Minutes (2)

Technical Outlook (SPX):

  • SPX confirmed the rejection at 1978 and finished lower than the recent closing lows of the past few weeks which is a significant move and a sign that the market is ready for the next leg down. 
  • Last weeks dead cat bounce is exactly that…. dead. 
  • Today may see a bounce, but should simply be viewed as a knee jerk reaction to yesterday’s move and not taken as anything legitimate. 
  • Any upward move to be taken serious needs to clear 1978. 
  • The next target for the market should be 1904, which would represent the August lows. 
  • That price target will be in conjunction with the 200-day moving average as well. 
  • VIX confirmed yesterday’s move by popping up and over 17. 
  • Extreme reading on T2108 with only 17% of stocks trading over their 40-day moving average. 
  • 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 10-8-14

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