Technical Analysis:
- A sell-off yesterday that was hardly a sell-off for the S&P 500 (SPX). Price fell by 0.66 points or 0.03%. Essentially it was a day of sideways price action.
- SPX found support right at the 20-day moving average yesterday by forming an indecisive doji candle just above it.
- Volume fell off some yesterday on SPDRs S&P 500 (SPY) but that is expected with year end upon us. I expect more of the same today.
- CBOE Market Volatility Index (VIX) rose for a fifth straight day. The best winning streak since the late October run. Still, the VIX is trading at 13.37 with a 3.2% rally yesterday.
- Barring a major rally by the Dow Jones Industrial Average (DJIA) it will have to wait until next year to cross the irrelevant 20,000 market. Volume has also pealed off quite dramatically on the index compared to where it was following the election.
- Nasdaq (COMPQ) also found support at the 20-day moving average yesterday.
- SPX is trading right at the lower end of a recent trading range, and should the market sell-off today, would break below that and confirm a short-term topping pattern.
- Light Sweet Crude Oil Futures (/CL) showing some weakness heading into the open, though its current trend-line is well intact.
- Day 3 of the Santa Rally is upon us, with nothing to show for it as the market has sold off during the first two days.
- I have thoroughly enjoyed trading with you all this year, and look forward to an epic 2017 filled with many new trading opportunities and adventures. This particular year of trading had so many shock events and the craziness was through the roof. But we survived and profited from those events. I can’t wait to see what next year holds for us!
My Trades:
- I added one new swing-trade to the portfolio yesterday.
- I did not close out any positions yesterday.
- I will look to add 1-2 new swing-trades to the portfolio today.
- I am currently 50% Long / 10% Short / 40% Cash
Chart for SPX:
