Pre-market update:

  • European markets are trading 0.3% higher. 
  • Asian markets traded 0.2% lower.
  • US futures are trading 0.2% higher. 

Economic reports due out (all times are eastern): Retail Sales (8:30), Empire State Manufacturing Survey (8:30), Business Inventories (10)

Technical Outlook (SPX):

  • SPX is trading at a level now that makes it nearly impossible to advance higher. We are up seven straight days – eight would  be simply amazing, nine would be unheard of. 
  • I expect a pullback of some kind, small or large, to occur today, but no later than tomorrow. History demands it. 
  • SPX continues to trade against the upper Bollinger Band as welll – a place that can often times lead to heavy resistance. 
  • Steep  upward trend-line off of the SPX 6/24 lows has rising support at 1649. SPX has rallied 120 points since then. and up 11 out of the last 13 days. 
  • A new higher high was formed Thursday in a most convincing manner, and officially ended the downtrend off of the 5/22  highs. 
  • Volume has been relatively light throughout the rally. 
  • VIX remains under 14. 
  • Careful to note all the gaps that have formed on this uptrend off of the lows of 6/24. More times than not a market will ultimately come back and fill those gaps. 
  • Markets don’t care about the economy. 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 7-15-13

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