Technical Analysis:

  • Strong move from the market yesterday, with the S&P 500 (SPX) rising another 0.5% and just six points away from new all-time highs. 
  • Currently SPX is underway on the second leg of the bounce that began last week. If it is anything like the Brexit bounce it should still have more room to run before finding some sellers. 
  • The 5-day moving average continues to offer a great deal of support for SPX. 
  • Volume on SPDRs S&P 500 (SPY) broke the five-day decline. Despite this, the volume was still below recent averages. 
  • Massive bearish engulfing candle pattern on United States Oil Fund (USO) and saw a rejection at the 20-day moving average. This puts the current bounce in oil at high-risk. 
  • CBOE Market Volatility Index (VIX) continues to hold the rising trend-line off of the August lows. Despite breaking it intraday yestrday, VIX managed to rally and close right on the trend-line. 
  • Nasdaq (QQQ) continues to exhibit the most strength of all the indices of the last three days. 
  • SPX 30 minute chart trending nicely after breaking out of the triangle from earlier this week. Solid higher highs and higher lows. 
  • Dow Jones Industrial (DJIA) coiling nicely over the last four days and still holding the 5-day moving average in the process. 

My Trades:

  • Sold MU yesterday at 19.22 for a 7.0% Profit. 
  • Added three new swing-trades to my portfolio yesterday. 
  • Will look to add 1-2 new swing-trades to my portfolio today. 
  • I am currently 40% Long / 10% Short / 50% Cash

Chart for SPX:

SP 500 Market Analysis 11 18 16