Technical Outlook:

  • SPX continues, and continues to struggle for real direction. Despite what seemed like a likely breakout of consolidation on Monday, SPX yet again decided to give back those gains and trade in the monotony of consolidation that has plagued this market for the entire year minus one episode in February that provided traders with some nice gains. 
  • Ultimately, a move over 2111 would be very healthy for the market. Right now, despite it being so close, it feels so far away for the bulls to attain. 
  • However, for the bears, getting short this tape is only good for 1-2 days at best before the upside rips take hold. 
  • SPY showed very weak volume on the pullback yesterday. 
  • VIX continues to bounce around the 12.70’s as it did yesterday. 
  • T2108 (% of stocks trading above the 40 day moving average) is still at around 58% and has hardly moved over the past few weeks. 
  • 2080 needs to hold on SPX following the uptrend off of the uptrend from the 10/16/14 opening price. 
  • With Monday’s move the SPX chart has managed to break back above resistance (dotted line below). However, there is now a secondary resistance level that formed with Friday’s rejection by connecting the candle shadow tops. Resistance for this is at 2111. 
  • Bullish kicker candle patterns were formed across the board for SPY, DIA, QQQ, and IWM, during the Friday sell-off and Monday rally. 
  • SPX 30 minute chart shows very little at this point except for the choppiness between 2075 and 2111 of late. 
  • 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 one long position yesterday. 
  • 30% long / 70% cash. 
  • I’ll consider adding 1-2 new positions today dependent on the strength of today’s price action. 
  • Remain long: AAPL at 126.81, ETN at 68.88
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 4-22-15

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