Technical Outlook:
- Second straight “inside-day” for the S&P 500 (SPX) where price closed inside the body of the previous day’s price action.
- There is a rising trend-line off of the September lows that continues to hold strong for the bulls.
- Couple that with the declining trend-line from the August all-time highs, and you have yourself a nice triangle pattern.
- Yesterday marked another lost opportunity by the bears to drive the market notably lower, by allowing for the bulls to ramp the market higher in the afternoon trading.
- There has been a significant amount of back-and-forth by the market in recent days where neither side can sustain any sort of rally or decline.
- A positive finish today would market the fifth straight day of “up-down” price action on SPX.
- Volume on SPDRs S&P 500 (SPY) was slightly below average yesterday and well off of the above average volume seen of late.
- CBOE Market Volatility Index (VIX) continues to show an inability to sustain any upside momentum – instead it continues to get pummeled on a daily basis.
- The rising trend-line from the September lows has rising support today at 2153. Be sure to watch that level today if there is a sell-off.
- Nasdaq (QQQ) remains in a healthy state with price consolidating right below its all-time highs.
- Going back to 9/16, the 20-day moving average remains incredibly strong for the Nasdaq.
- Oil continues its push higher, looking to increase its win streak to five days, and breaking above the September highs and thereby establishing a higher-high.
- The number of stocks trading above their 40-day moving average fell by -9.1% yesterday to 45.5%
My Trades:
- Did not close any swing-trades yesterday.
- Added two short positions and one long position yesterday.
- May add 1-2 new swing-trades to the portfolio today.
- Currently 10% Long / 20% Short / 70% Cash
Chart for SPX:
