Technical Analysis:

  • The S&P 500 (SPX) exhibited dull price action but nonetheless managed to rally higher yesterday and out of the bull flag it had been trading in the previous few trading sessions. 
  • Volume on the SPDRs S&P 500 (SPY) dropped off just a smidge yesterday and remains below average. The drop off in the last two days have been noticeable and I suspect it will continue into the end of the year. 
  • So far the market is basically ignoring the rate increase entirely. There has be no impact so far. Last year, the selling picked up considerably right at the end of the year when the traditional Santa Claus rally typically kicks off. 
  • Watch for potential support on CBOE Market Volatility Index (VIX) at the 11.33 area, after it shed 2.2% yesterday and dropped for a fourth straight day. 
  • SPX 30 minute chart broke out of its triangle pattern on the 30 minute chart and looks to breakout into the year-end. 
  • Light Sweet Crude Oil Futures (/CL) continues to mach higher and exhibiting one of the better trends that we have seen out of it over the past 7 months – exhibiting clear higher-highs and higher-lows.  

My Trades:

  • I added one new long position to the portfolio yesterday. 
  • I sold SPXU yesterday at $19.72 for a 1.2% loss. 
  • I did not close any additional positions. 
  • I will look to add 1-2 new swing-trades to the portfolio today. 
  • I am currently 20% Long / 10% Short / 70% Cash

Chart for SPX:

SP 500 Market Analysis 12 21 16

 

 

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