• SP 500 Market Analysis 7-9-15

Technical Outlook:

  • Huge sell-off yesterday finally resulting in a break of the 200-day moving average. The first time this has happened since last October’s sell-off. 
  • SPX sell-off yesterday put the index in negative territory for the year. 
  • Today a strong bounce is brewing. It is important for the bulls that the rally exceeds yesterday’s highs (currently the open is poised to open above yesterday’s highs). 
  • SPY volume remained very strong yesterday despite. NYSE shutting down for much of yesterday had a significant impact on the volume of individual stocks. 
  • VIX popped 22% to 19.66 yesterday, while T2108 (% of stocks above 40-day moving average) dropped 22% to close the day at 23.07. The lowest that we have seen since 10/17. 
  • SPX 30 minute chart has a strong downtrend still in place. For the bulls to change the sentiment, SPX needs to rally past 2085 in order that a new higher-high is established. 
  • Greece remains a significant headline risk to the upside and downside. Be ready to respond accordingly. 
  • 2039 is another major support level to watch here. 
  • The market doesn’t care about the economy nor earnings. That is not what is driving it. The market cares about what the Fed is doing to keep equities propped up. 


My Trades:

Chart for SPX:

SP 500 Market Analysis 7-9-15

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