Technical Outlook:
- SPX continued its selling ways – falling another 1.4% yesterday down to 2049.
- Jobs report this morning – 211k actual vs 200k expected. Market rallied a small bit as a result.
- Saudi Arabia not cutting production has since wiped out all those gains.
- Since breaking out on Tuesday, the market has now reversed course and lost over 54 points to the downside in the last two days alone.
- Short-term trend-line off of the 10/14 lows looks to possibly be tested today, along with the 50-day moving average.
- 200-day moving average was lost yesterday.
- If the 11/16 lows are lost at 2019, you have a confirmed double top pattern that is now in play on SPX and the market turns decidedly bearish as a result.
- VIX rallied another 13% yesterday (up as much as 20% at one point) to close at 18.11.
- There is a strong trend-line downward on the VIX that has marked the bottom of every sell-off of late on SPX. Yesterday that trend-line was tested, but VIX closed just beneath it.
- SPY volume was very strong, and the strongest that we have seen since October.
- SPX 30 minute chart shows a strong triangle pattern that SPX is trading inside of here.
- T2108 (% of stocks trading above their 40-day moving average) completely broke down yesterday losing 20% to finish at 36% on the day.
- 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”.
My Trades:
- Sold CVX yesterday at 89.77 for a 2.6% loss.
- Sold UPRO yesterday at 65.51 for a 1.8% loss.
- Added two additional long positions to the portfolio yesterday.
- Will consider adding one to two new long positions to the portfolio today IF the market can show a willingness to rally today.
- 60% Long / 40% Cash
- Remain long: AMZN at $673.85, ADSK at $63.63, CRM at $79.86 and three other positions.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
