• SP 500 Market Analysis 5-21-15

Technical Outlook:

  • Fairly quiet session of trading yesterday until the FOMC minutes came out which created a stir as well as a false break higher that was quickly sold. 
  • Oil has shown far greater volatility in the past few days then what we had previously seen over the past two months. 
  • 5-day moving average for SPX continues to remain strong for price action and SPX has shown a willingness to bounce off of it on the retests. 
  • SPX 30 minute chart has consolidated over the past two days. 
  • VIX continues to hug the July ’14 support/trend line, as VIX only rose 0.2% to 12.88. 
  • Volume still coming in at well below average levels – not uncommon during a holiday week. 
  • All SPX needed to insure was that it held the 2120 breakout level and it did. 
  • Weekly chart of SPX shows a market in the early stages of a new leg higher. However, there is also a maturing bearish wedge that could be threatened if SPX manages to rally into the 2160’s-70’s. 
  • 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:

  • Added one new long position yesterday. 
  • Closed out UNM yesterday at 35.01 for a 0.1% gain. 
  • 40% long / 60% cash. 
  • Remain long: C at 54.58, AAPL at 128.45, MHFI at 107.79.
  • I’ll consider adding 1-2 new long positions to the portfolio today as long as SPX stays above 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 5-21-15

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