Technical Outlook:
- Hard afternoon rally yesterday provided traders with a breakout of the range of consolidation from the previous seven trading days.
- Now the market is setup to make a challenge of the declining resistance off of the May highs today with resistance being at 2115.
- Rising support off of the September lows currently sits at 2069.
- Once aforementioned resistance is broken, all-time highs will become the next challenge for SPX to tackle at 2034.
- Also, by breaking the resistance at 2115 today, it will confirm a massive inverse head and shoulders pattern forming on SPX.
- VIX dropped by an additional 9% yesterday down to 14.67 and appears to be in a free-fall headed towards the 11-12 range.
- Volume on SPY yesterday was slightly lower than what we saw on Monday and a shade below average volume readings.
- Trading range that SPX had previously been stuck in on the 30 minute chart, has been broken out.
- Very small moves out of T2108 (% of stocks trading above the 40-day moving average) as it moved 5.5% yesterday to 54%.
- SPY is essentially sitting in the middle of the range that has plagued the market all year long, outside of the August/September sell-off.
- For twelve years straight, the market over the course of the last 30 trading days of the calendar year, has yielded a net positive gain, and thus reinforcing the concept of the “Santa Rally”.
- A rate hike is expected out of December’s Fed meeting. However, I still would not be surprised if the Fed backed out of raising rates yet again. They’ve been doing just that for years now.
My Trades:
- Sold A yesterday for a 4% gain.
- Added two additional long positions to the portfolio yesterday.
- Will consider adding one to two new long position to the portfolio today, while also managing the profits on existing positions.
- 70% Long / 30% Cash
- Remain long: AMZN at $673.85, MDRX at $14.85, ETN at $58.12, ADSK at $63.63, BIDU at $200.21 and two other positions.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
