Tuesday, May 20, 2014

ImageKeeping with the theme of individual stocks bouncing off their respective “13’s”, FireEye (FEYE) is another key example. Probably one of the best plays for the cyber security sector, the current environment for FireEye is set up bullish. There is the TD Buy Countdown @13 that is holding on the daily chart, and there is the weekly FEYE chart which recorded a “9” on TD Buy Setup last week. Closing the gap at 36.75 would be the logical minimum expectation. 

The trading range for the SPX continues to rule. The bears had plenty of time to do damage since the beginning of the year, but continues to languish sideways. Using the Russell 2000 (RUT) as a roadmap, the weekly RUT is now on a “9” count TD Buy Setup, suggesting a digestion period is coming up, especially if stocks such as FEYE can manage to hold above their recorded “13” levels. 


S&P 500 (SPX) SHORT TERM OUTLOOK: NEUTRAL

Bearish if SPX closes below 1870.85 (tomorrow’s daily price flip) or bullish if SPX closes above 1894.21 today.

ImageAggregating the short duration timeframes, the 15/30/60 minute TDST Support levels are between 1868.38 – 1869.56. Taking TD Buy Setup out of the equation, closing under these levels today will be interpreted as bearish. Also, holding out for an upside bull surprise today, closing above the short duration TDST Resistance levels between 1893.96 – 1894.21 can seal it. 


S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: NEUTRAL

Back to bearish if SPX closes below 1870.85, tomorrow’s bearish price flip. 

ImageImageImageA SPX close above 1888.53 today will price flip the SPX bullish and another incremental high is in the cards. 2014 is going down as one of the worst years to trade the indices. 


S&P 500 (SPX) INTERMEDIATE/LONG TERM STATUS: NEUTRAL

Switch to bearish if weekly SPX closes below 1863.40 on May 23rd (updated May 19th).


S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH

Flip to neutral if the SPX does not trade above 1897.28 during the month of May and closes below 1836.27 on May 30th, the 8 month MA. Alternatively, flip to neutral if SPX closes below 1782.59 on May 30th (updated May 5th).


 

Advertisements
This entry was posted in Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s