Pre-market update:

  • Asian markets traded 1.6% higher.
  • European markets are trading 1.0% higher.
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): Housing Market Index (10)

Technical Outlook (SPX):

  • Huge opportunity for the bulls today to follow through on Friday’s respectable bounce and attempt to gain back some of the recent losses. 
  • Pretty much a bullish engulfing pattern on SPY over the past two trading sessions. 
  • Volume was very strong on Friday. Mainly due to options expiration. 
  • So far price action is barely holding on to the lows established back earlier this month. If they eventually break there is a date with the December lows. 
  • VIX dropped only 6.4% to 20.95. 
  • T2108 (% of stocks trading above the 40-day moving average) rose a solid 17.3% to 42.8%
  • SPX 5-minute chart is forming a nice double bottom base that it is looking to confirm at the open today. 
  • 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:

Chart for SPX:

SP 500 Market Analysis 1-20-15

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