Technical Analysis:
- Inside day (candle body contained inside the previous trading day’s body) of trading yesterday on S&P 500 (SPX) yesterday, that kept the current uptrend intact.
- The 5-day moving average held strong on Friday.
- Volume on the SPDRs S&P 500 (SPY) increased for a second straight day, but still remained below recent averages. Enthusiasm on the current rally is not nearly as strong as it was during election week, but the price action is still solid for the bulls.
- 3-day winning streak on the Nasdaq (QQQ) broke on Friday and closed exactly on its 50-day moving average. Still the index that is lagging all other indices, showed signs of strengthening over the past week.
- Small caps (IWM) continue to exhibit a lot of strength, though I would caution on loading up on the small caps at this point. It is currently up ten out of the last eleven days.
- CBOE Market Volatility Index (VIX) diverged from Friday’s market direction, by dropping another 3.8% and down to 12.85. This officially breaks the rising uptrend off of the August lows for the first time (bullish for equities).
- SPX 30-minute chart continues to consolidate at recent highs and now showing any notable weaknesses at this point.
- Today marks a shortened holiday week, where the market is only open 3.5 days. This tends to be one of the most bullish market weeks of the year from a historical standpoint.
- Expect volume to get very light as the week moves closer to the Thanksgiving holiday.
- Price is still less than 1% of all-time highs, and expect that to be tested at some point this week.
My Trades:
- Added one new swing-trade to the portfolio yesterday.
- Covered my short in XOM at 85.09 for a 1.2% profit.
- Sold NKE at $51.04 for a 0.4% loss.
- Will look to add 1-2 new swing-trades to my portfolio today.
- I am currently 40% Long / 60% Cash
Chart for SPX:
