Technical Outlook:

  • Bulls managed to string together two successful days of trading that will now put price right below the declining trend-line on the S&P 500 (SPX) downward trend-line off of the all-time highs that was achieved back in August. high score
  • Volume on the SPDRs S&P 500 (SPY) actually increased yesterday and was well above recent averages. 
  • Yesterday’s rally was significant for the bulls because it allowed for price on SPX to climb back over the 5 and 50-day moving averages. 
  • Crude (/CL) rallied strong yesterday finishing 5% higher on a news of a possible cap on production. United States Oil Fund (USO) attempting to break the downtrend today off of the August highs. In doing so, it would break out of a nice triangle pattern going back to August as well. 
  • SPX 30 minute chart shows a nice series of higher-lows following the 9/12 bottom, but needs to still establish a higher high too. 
  • The same minute chart sporting an inverse head and shoulders pattern going back to late August. 
  • CBOE Market Volatility Index (VIX) looks to test the rising trend-line off of the August lows today. There has been some selling when this trend-line has been tested over the last two months, including the large sell-off on 9/9. 
  • Nasdaq (QQQ) is on the verge testing its all-time highs again. 
  • The number of stocks trading above their 40-day moving average has increased by 22% yesterday, with 53% of stocks now above it. 

My Trades:

Chart for SPX:

SP 500 Market Analysis 9-29-16