• SP 500 Market Analysis 12-13-13

Pre-market update:

  • Asian markets traded 0.4% higher.
  • European markets are trading 0.2% higher. 
  • US futures are trading 0.2% higher ahead of the market open. 


Economic reports due out (all times are eastern): Producer Price Index (8:30) 

Technical Outlook (SPX):

  • Technically some key support levels are being violated with yesterday’s close. 
  • The 1777-1779 range was broken yesterday and that now establishes a new lower low in the SPX daily chart. 
  • However it took 8 out of the last 10 trading sessions of moving the market lower to do it. As a result, I am weary about adding new short positions to the portfolio. 
  • Instead I’d look for a bounce  here, because all throughout 2013 technical breaks that occur when the SPX is overextended has led to some mighty sharp market bounces. 
  • 1772 now becomes a key price level support for the SPX to hold on to going forward. 
  • 30 min SPX has confirmed the head and shoulders pattern/double top pattern. 
  • SPX is now in oversold territory. 
  • 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 12-13-13

You Might Like

  • South Korea and its impact on the US stock market.

    South Korea: The Hidden Driver of US Tech Volatility

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped