Technical Outlook:

  • The S&P 500 (SPX) once again proved that there is no dip that can be sustained in this market. WIth that said, price action did finish below the 5-day moving average for a second straight day, and right on the 10-day moving average. 
  • There is what I would consider to be, a bear flag that has formed on SPX daily chart. A move below yesterday’s lows would confirm the breakdown on the pattern. 
  • Volume improved for a second straight day, but still well below recent averages on SPDRs S&P 500 (SPY).
  • Second straight day of the CBOE Market Volatility Index (VIX) rallying – and the rally taking place right near the rising trend-line off of the VIX August lows. 
  • Going back to October 12th, SPX on the 30 minute chart remains in a very choppy price pattern. 
  • Nasdaq (QQQ) was within reach of estasblishing new all-time highs, but pulled back the last two days and giving up the 20-day and 50-day moving averages. 
  • Break down in oil confirmed a mini-double top price pattern on the daily chart of United States Oil Fund (USO). 

My Trades:

  • Added two new short positions yesterday. 
  • Added one new long position yesterday. 
  • Covered CSCO at $30.71 for a 1.5% loss. 
  • Will look to add 1-2 new swing-trades to the portfolio today. 
  • Currently 10% Long / 40% Short / 50% Cash

Chart for SPX:

SP 500 Market Analysis 10 27 16

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