Pre-market update:

  • Asian markets traded 0.5% lower.
  • European markets are trading 0.7% lower.
  • US futures are trading 0.4% lower ahead of the market open. 


Economic reports due out (all times are eastern): GDP (8:30), Jobless Claims (8:30), Corporate Profits (8:30), Pending Home Sales Index (10), EIA Natural Gas Report (10:30), Kansas City Fed Manufacturing Index (11)

Technical Outlook (SPX):

  • No surprise here to see the market gapping down in the pre-market today. 
  • A pullback would be much needed – doesn’t need to be a strong one, but enough to let prices cool off some on individual stocks. 
  • Russia and Ukraine back in the headlines and the news driver behind the sell-off. 
  • With this pullback there is some support between 1888 and 1891.
  • SPX rose for the 11th time in the past 14 sessions. 
  • 30 minute SPX chart has a well-defined head and shoulders pattern that will confirm at the open today. 
  • Volume continues to rapidly drop off this week. 
  • A lot of nontraditional traders are starting to get interested in this stock market which usually starts to show that there is too much “froth” in the market. 
  • Continue to tighten stops and take profits where you can on positions ensuring that you don’t get caught with your pants down if the market suddenly sells-off. 
  • 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 8-28-14

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