• S and P 500 Market Analysis 3-06-13

Pre-market update (updated 8am eastern):

  • European markets are trading 0.7% higher.
  • Asian markets traded 1.3% higher. 
  • US futures are trading moderately higher ahead of the opening bell. 

Economic reports due out (all times are eastern): MBA Purchase Applications (7am), ADP Employment Report (8:15am), Factory Orders (10am), EIA Petroleum Status Report (10:30am), Beige Book (2pm), Treasury STRIPS (3pm)

Technical Outlook (SPX):

  • SPX  yesterday made new post recovery highs after rallying 1%. 
  • Most troubling about the rally is the continued below average volume levels of trading taking place. 
  • The weekly chart shows a strong breakout in place. 
  • The Down hit all time highs yesterday, and SPX is only 36 points away from achieving the same feat. 
  • VIX is back in the 13’s. 
  • SPX back to its old ways of being overbought. 5 of the 6 trading days has seen the market push 55 points higher. 
  • Both channels (July October 2012) and the price channel we are currently in are very similar in nature. 
  • We haven’t seen a market pullback in excess of 4% since October/November time-frame. 

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 3-06-13

You Might Like

  • The rise of the retail trader in the stock market.

    The Retail Trading Revolution: How Small Investors Are Reshaping the Stock Market

  • fading the gap

    Fading the Gap: How Large Overnight Moves in SPY and QQQ Play Out During the Trading Day

  • how to trade a bear flag

    How to Trade a Bear Flag