• SP 500 Market Analysis 5-5-15

Technical Outlook:

  • SPX surged higher at the open yesterday during the first 30 minutes of trading but then spent the remainder simply giving back 1/2 the day’s gains. 
  • A move below 2110 as SPX is poised to do at the open which would break yesterday’s lows. 
  • Ultimately, for the bears, SPX needs to push below last week’s lows at 2077 and then 2040. 
  • For the bulls, to regain favor with this market, a push above 2120 becomes absolutely necessary. 
  • Volume has dropped off the last two days and was extremely light in general yesterday. 
  • The market chop since mid-February continues to persist and get even tighter as the weeks pass by. 
  • VIX rose 1.2% yesterday to 12.85.
  • 30 minute chart of SPX is very choppy and without any clear direction. 
  • SPY trend-line off of the February lows held up perfectly. 
  • 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:

  • Did not close out any positions yesterday. 
  • Added one new long position yesterday. 
  • 20% long / 80% cash. 
  • Remain long: INTC at $33.14.
  • I’ll consider adding 1-2 new positions today dependent on the strength of today’s price action. 
  • May add a short position if the market cannot break through 2120. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 5-5-15

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