• SP 500 Market Analysis 2-10-14

Pre-market update:

  • Asian markets traded 0.9% higher. 
  • European markets are trading 0.2% higher.
  • US futures are trading 0.2% lower ahead of the market open. 


Economic reports due out (all times are eastern): No news

Technical Outlook (SPX):

  • Another strong follow through on Friday, making this market very reminiscent of the market bounce off from off the lows in October 2013.
  • The 20-day and 50-day moving average now looms overhead at 1804 and 1809 respectively. 
  • Price resistance at 1809. 
  • In each of the last 6 trading sessions, volume has been above average. 
  • The biggest technical stronghold is the strength the market found from the trend line that started off of the August ’13 lows. 
  • In just four days the VIX has dropped from  21+ down to 15.29. 
  • Janet Yellen testimony before Congress tomorrow will weigh heavily on the market. 
  • SPX recaptured the 10-day moving average on Friday for the first time since 1/22/14.
  • 30- minute chart of the SPX continues to rally off of the double bottom. 
  • A lower-low has now been formed on the SPX chart. 
  • Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

Chart for SPX:

SP 500 Market Analysis 2-10-14

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