• SP 500 Market Analysis 4-21-14

Pre-market update:

  • Asian markets traded 1.9% higher. 
  • European markets are trading 0.5% lower.
  • US futures are trading 0.1% higher ahead of the market open. 


Economic reports due out (all times are eastern): Chicago Fed National Activity Index (8:30), Leading Indicators (10)

Technical Outlook (SPX):

  • Four-day bounce underway – typically bounces, even legitimate ones, see at least a small bit of profit taking after rallying as many days. 
  • 1873 is going to be very key going forward. Two months of reversals have taken place at this price level. 
  • SPX needs to break and close above 1873 for this bounce to be taken seriously. 
  • Also, a break of 1873 would represent a new higher-higher, and break the downtrend of the past two weeks. 
  • Volume on SPY continues to come in weak on the days where the market is up. 
  • It is very possible that much of this rally has been a result shorts being squeezed out of their positions. 
  • Perhaps 30-minute SPX charts is forming an inverse head and shoulders pattern. 
  • The Market doesn’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 4-21-14

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