Technical Analysis:

  • Futures taking a notable dip this morning, though it has recovered about 2/3’s of its losses, as the S&P 500 and Nasdaq had actually limited down during the election coverage last night. 
  • With Donald Trump as the President-Elect, I highly expect the Fed to raise rates in December, since Yellen isn’t beholden to him like she was to Obama. 
  • SPDRs S&P 500 (SPY) is poised to open in the gap and below the lows of Monday’s price action. 
  • Volume on SPY yesterday was on par with yesterday’s showing and well above recent averages. 
  • Despite the rally in the S&P 500 (SPX) yesterday, the CBOE Market Volatility Index (VIX)
  • Expect heightened volatility in the market over the next couple of days. 
  • SPX perfectly tested the 50-day moving average yesterday and was rejected. So in essence, there is strong support at the 200-day and strong resistance at the 50-day moving average. Those are the two price levels to watch. 
  • SPX also poised to break back below the 2120 key support level today. 

My Trades:

  • Added two new short positions yesterday. 
  • Did not close out any positions yesterday.
  • Will look to add 1-2 new swing-trades to the portfolio today. 
  • Currently 20% Short / 100% Cash

Chart for SPX:

SP 500 Market Analysis 11 9 16

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