The S&P 500 (SPX) took a breather yesterday when it decided to sell-off ever so slightly.
The 5-day, 10-day and 20-day moving averages on SPX are converging and offered an excellent support level for the bulls to bounce off of yesterday. Watch that level of support, again today.
Light Sweet Crude Oil Futures (/CL) still range bound and could go either direction at this point. However it is trying to string together a 3-day winning streak.
Volume on SPDRs S&P 500 (SPY) barely fell yesterday, but did so for a third straight day, and the readout was also below recent averages.
Bull flag on the SPY/SPX charts that I would expect for the bulls to eventually push through.
A good rally today will put the Dow Jones Industrial Average (DJIA) past the 20,000 mark and put the meaningless story to bed.
CBOE Market Volatility Index (VIX) got slammed for a third straight day. Support hovering around the 11.25 area. Potential for a bounce here.
Nasdaq (QQQ) bucked the trend yesterday of the other indices with a rally of its own. It is poised for new all-time highs yet again.
The “January Effect” which many believe is a barometer on how the rest of the year will fair, has been right only once in the last three years. Consider the fact that 5 of the last 8 years January has performed opposite of the total returns for its given year.
No new trades for me yesterday. The market action wasn’t conducive to adding anything else.
My current market exposure is 50% long and 0% short and the rest is cash.
I didn’t close out any trades yesterday either. Portfolio remained the same.
I will look to add 1-2 new swing-trades to the portfolio today as well as a new hedge to the portfolio.