• SP 500 Market Analysis 8-20-15

Technical Outlook:

  • SPX had a wild and turbulent ride yesterday watching price drop 26 points, only to rally to break even on a leaked Fed minutes, followed by another drop of 17 points into the close. 
  • Today SPY is looking at its 8th straight gap down in the market. 
  • There has been plenty of dip buying of late and could possibly see the same happen again today. However, the dip buying has been strong enough to take the market back to break even but struggles mightily with actually going and staying in the green. 
  • It stands to reason at this point that the Fed will not raise rats in September – possibly not even this year. This could be reason to inspire the dip buyers to take the market back up today despite the overall weakness heading into the day. 
  • The 200-day moving average is no doubt on the forefront of my trading today. Can the bears break and close below this all-important MA. 
  • Nothing but a massive chop for SPX 30 minute chart. 
  • As of today this is the longest period of consolidation for the market this far into a year. The second longest and tightest period was 1911. yes, this is a trading range for the ages. 
  • SPX crushed all the short-term moving averages including the 5, 10, 20, and 50-day moving averages. 
  • VIX had a rather tumultuous day as it finished up 1.6% after multiple +10% swings in both directions. It is currently at 15.25. 
  • Significant increase in the volume, nearly more than the previous two days combined. I’d look for similar volume readings again today. 
  • A view is emerging that a rate hike in September might be off the table. Today’s Fed minutes may shed more light on this area. 


My Trades:

  • Did not add any positions yesterday.
  • Did not close out any positions yesterday. 
  • 50% Long / 50% cash. 
  • Remain long: SBUX at 56.37, UPRO at 67.17, AAPL at 114.64, NFLX at 123.45, FB at 94.66.
  • Weakness continues to hit the market hard each and every open, however, the bears are unable to break down this market. I have yet to make a trade this week (a rarity) due to the fact the market for better or worse, can’t decide what it wants to do here. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 8-20-15

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