- The S&P 500 (SPX) took a breather yesterday when it decided to sell-off ever so slightly.
- The 5-day, 10-day and 20-day moving averages on SPX are converging and offered an excellent support level for the bulls to bounce off of yesterday. Watch that level of support, again today.
- Light Sweet Crude Oil Futures (/CL) still range bound and could go either direction at this point. However it is trying to string together a 3-day winning streak.
- Volume on SPDRs S&P 500 (SPY) barely fell yesterday, but did so for a third straight day, and the readout was also below recent averages.
- Bull flag on the SPY/SPX charts that I would expect for the bulls to eventually push through.
- A good rally today will put the Dow Jones Industrial Average (DJIA) past the 20,000 mark and put the meaningless story to bed.
- CBOE Market Volatility Index (VIX) got slammed for a third straight day. Support hovering around the 11.25 area. Potential for a bounce here.
- Nasdaq (QQQ) bucked the trend yesterday of the other indices with a rally of its own. It is poised for new all-time highs yet again.
- The "January Effect" which many believe is a barometer on how the rest of the year will fair, has been right only once in the last three years. Consider the fact that 5 of the last 8 years January has performed opposite of the total returns for its given year.
- No new trades for me yesterday. The market action wasn't conducive to adding anything else.
- My current market exposure is 50% long and 0% short and the rest is cash.
- I didn't close out any trades yesterday either. Portfolio remained the same.
- I will look to add 1-2 new swing-trades to the portfolio today as well as a new hedge to the portfolio.
Chart for SPX: