• SP 500 Market Analysis 5-28-14

Pre-market update:

  • Asian markets traded 0.4% higher. 
  • European markets are trading 0.1% lower.
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), ICSC-Goldman Store Sales (7:45), Redbook (8:55)

Technical Outlook (SPX):

  • Yesterday’s rally represents a shift in outlook that is taking hold of this market as it moves from being range-bound to the beginning of a new uptrend. 
  • Volume came in stronger than what we had seen in recent days. 
  • There is little to no reason to be net-short this market at this, which should also lead to additional short-squeezing like we have seen over recent days. 
  • Any pullback that we see needs to hold the 1897-1900 price level. 
  • VIX popped back up to 11.51. 
  • SPX back into overbought territory. 
  • If the SPX, over time advances well into the 1900’s, then it likely becomes that the correction everyone was looking for took place over time and with consolidation and not with a significant pullback. 
  • The number one priority of the bears has to be to get price back below 1900 and ideally back below 1883.=
  • The 50-day moving average continues to be a significant moving average of support level to watch going forward. 
  • The short-term support rising off of the 4/28 lows continues to hold up well. 
  • In re: SPY: Don’t be troubled by the heavy volume on down days versus the weak volume on up days – that has been happening for years now. 
  • 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 Opinions & Trades:

  • Closed out TIBX at $21.56 for a 9.2% gain. 
  • Closed out GOOG at $564.99 for a 5.6% gain.  
  • Added two new long positions yesterday.
  • I will look to add 1-2 new long positions today. 
  • Remain long GLW at 20.95, LVS at 73.16, AMAT at 20.04.
  • 50% Long / 50% 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 5-28-14

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