Technical Outlook:
- Very low volume day yesterday on the SPY and SPX traded within an eight point range.
- All key support levels were held up yesterday, and the 20-day moving average was tested and held as well.
- The key for the bulls moving forward is to push through the declining resistance off of the May highs. The rejection there is what led to the sell-off last week. This is my biggest concern going forward. Once that is broken, I believe that new all time highs for SPX will be right around corner.
- VIX was a non-issue yesterday as it spiked momentarily but closed only 0.8% higher at 16.98.
- SPX 30 minute chart shows a nice uptrend with higher highs and higher lows that started forming this week, with a bull flag at those rally highs. Very bullish chart right now.
- Following the eight day sell-off that ended on Friday, SPX could very sell be setting up for a notable rally that takes price beyond the current all-time highs. It is the season for such a rally.
- For twelve years straight, the market over the course of the last 30 trading days has yielded a net positive gain, and 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:
- Added one new long position to the portfolio yesterday.
- Did not close out any positions yesterday.
- Will consider adding one new long position to the portfolio today, while also managing the profits on existing positions.
- 80% Long / 20% Cash
- Remain long: FDX at $157.91, MSFT at $53.88, FB at $104.85, TSO at $113.98, BIDU at $199.21 and three additional trades.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
