• SP 500 Market Analysis 9-25-14

Pre-market update:

  • Asian markets traded 0.8% lower.
  • European markets are trading 0.6% lower.
  • US futures are trading 0.1% lower ahead of the market open. 


Economic reports due out (all times are eastern): GDP (8:30), Corporate Profits (8:30), Consumer Sentiment (9:55)

Technical Outlook (SPX):

  • Huge sell-off yesterday and biggest one we’ve seen since July 31st. 
  • 50-day moving average was broken decisively and with little effort. 
  • Most importantly the 1978 price level was broken yesterday which was critical support . Now SPX has created a lower-low for the market today. 
  • Trend line off of the Novermber 2012 lows might be tested today at 1957. 
  • There is very little support between current price and the August lows at 1904.
  • SPX 30-minute chart showing a well defined breakdown in place for the market. 
  • VIX spiked 17.9% to 15.64.
  • 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:

  • Flipped my bias yesterday once SPX made it known it would close below 1978. 
  • Sold TWTR at 51.80 for a 0.9% loss. 
  • Sold GOOG at 577.47 for a 1.7% loss. 
  • Added two new short positions yesterday. 
  • Will look to add 1-2 new short positions today. 
  • 20% Short / 70% Cash
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 9-25-14

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