Technical Analysis:

  • The S&P 500 (SPX) jump started the Santa Rally with a hard sell-off yesterday that sent equities reeling nearly 1% and to the lower end of the short-term trading range. 
  • Price broke the 5-day and 10-day moving averages and threatens to test the 20-day moving average today. This is the strongest sell-off seen since the rally began during election week. 
  • SPX needs to hold 2248. Dow Jones Industrial Average (DJIA) has yet to break through the non-important 20,000 level. 
  • Volume increased yesterday by 50% yesterday on SPDRs S&P 500 (SPY) but still well below recent averages and should remain below average through the end of the year. 
  • CBOE Market Volatility Index (VIX) saw one of its biggest increases of late by jumping 8% without any late day sell-offs (a rarity). The August support level continues to hold strong. 
  • Big sell-off on the T2108 (% of stocks trading above their 40-day moving average) that raises concerns about the market being able to continue this rally as the number of stocks tradidng above the MA dropped significantly from 72% down to 65%. 
  • Light Sweet Crude Oil Futures (/CL) trying to rebound today. The trend-line in oil is far better than what is out there on the indices. 

My Trades:

  • I day-traded SPXU yesterday for a profit. 
  • I closed WYN yesterday at 76.41 for a 1.8% loss. 
  • I will look to add 1-2 new swing-trades to the portfolio today. 
  • I am currently 40% Long / 10% Short / 50% Cash

Chart for SPX:

SP 500 Market Analysis 12 29 16

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