News Column

Today's Trading Plan: Fighting Exhaustion

June 23, 2014

Ryan Mallory

Pre-market update:

Asian markets traded -0.6% lower. European markets are trading 0.3% lower.

US futures are trading 0.1% higher ahead of the market open. 

Economic reports due out (all times are eastern):
Chicago Fed National Activity Index (8:30), PMI Manufacturing Index Flash (9:45), Existing Home Sales (10)

Technical Outlook (SPX):

Sixth straight day of pushing price higher. But the moves are becoming limited in their scope. Interestingly enough, SPY saw a 0.3% decline. It has been over two months since SPX saw a move of more than 1% (4/16/14).Heavy volume on SPX can be contributed to Quadruple Witching/Options Expiration. If the market is inclined to pullback here, a hold of 1925 is essential for the bulls. Otherwise it will be creating a short-term lower-low. SPX testing the long-term upper channel on the weekly chart dating back to the highs of 4/2012 and connects all the subsequent highs. SPX back in overbought territory. The rising trend-line off of 4/14/14 currently sits at 1918. bull flag coil on SPX 30 minute chart. VIX was notably higher on Friday, moving 2.2% to 10.85.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:

Closed FB at 63.70 for a 1.0% gain on Friday. Closed  CX at 13.30 for a 0.6% loss. on Friday. I added one additional long position yesterday. Remain long IR at 60.11, RVBD at 20.29, GPOR at 65.33, PACW at 44.18.50% Long / 50% CashJoin me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 6-23-14

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Source: Shareplanner