Pre-market update (updated 9:00am eastern):

  • Europe is trading 0.5% higher. 
  • Asian markets traded 0.3% higher. 
  • US futures are flat.  

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45am), Durable Goods Orders (8:30am), Bernanke Speaks (8:30am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Consumer Confidence (10am), FHFA House Price Index (10am), Richmond Fed Manufacturing Index (10am)

Technical Outlook (SPX):

  • The S&P 500 finally cooled off some yesterday after five straight days of rallying hard. 
  • Despite the gap down, the markets rallied off of the early morning lows. 
  • We also managed to hold the breakout level of the downtrend off of the 10/18 highs. 
  • But we have yet to clear the resistance level at 1410. 
  • SPX remains well overbought on the short-term time frame. On the long-term time frame, SPX is no longer oversold, like it had been prior to last week. 
  • SharePlanner Reversal Indicator shows a strong possibility for a Santa Rally
  • After 1410, look for the next level of resistance to kick in around 1437. 
  • Volume returned back to normal levels after experiencing weak holiday trading the week before. 
  • Despite the strong rally of late, the SPX failed to make a higher-high. As a result, I’d view this market with skepticism, until proven otherwise. 
  • SPX currently has recaptured the 10, 20, and 200-day moving averages. 
  • 30-minute chart shows nice consolidation at the highs. 
  • VIX remains at 15. 

My Opinions & Trades:

Chart for SPX:

S and P 500 Market Analysis 11-27-12