Technical Analysis:

  • Christmas volume starting to kick in yeserday as the S&P 500 (SPX) barely moved and gave up most of its gains on the day. 
  • SPDRs S&P 500 (SPY) volume fell off dramatically yesterday, coming in below average and at the lowest level seen over the last 9 trading sessions. 
  • The CBOE Market Volatility Index (VIX) was slammed yesterday again and for the third straight day, dropping 4% all the way down to 11.71.
  • Look for some support in the 11.30 area on VIX. 
  • Triangle pattern forming on the SPX 30 minute chart. 
  • Bull flag on the daily chart of SPX.
  • Nasdaq (COMPQ) showing a lot of long shadows on the daily chart – could be a sign that the index is struggling to move higher form here. 
  • Expect volume to continue to fall off between now and the year-end. 
  • The trend of late is to gap up and to struggle to hold those gains on the indices. 
  • Very little in the way of ground breaking news that will hit the market between now and year end. 
  • This time of year, people start anticipating a “Santa Rally” from the market but if you recall last year, that rally never came, in fact, the entire rally was marked by a great deal of selling.  

My Trades:

  • I sold Netflix (NFLX) yesterday at $125.49 for a 2.7% profit. 
  • I did not close any additional positions. 
  • I added one additional long position to the portfolio yesterday. 
  • I will look to add 1-2 new swing-trades to the portfolio today. 
  • I am currently 10% Long / 20% Short / 70% Cash

Chart for SPX:

SP 500 Market Analysis 12 20 16

 

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