• SP 500 Market Analysis 1-5-15

Technical Outlook:

  • Extreme intraday sell-off yesterday saw -54 points to the downside whittled away to -31 points on the day following another 3:30pm eastern ramp job. 
  • Since last Tuesday, and over the course of three trading sessions, the market has moved 90 points from highs to lows. 
  • Most importantly the price support on SPX at 1993, and $200.00 on $SPY held yesterday. This is very important for the bulls going forward. 
  • However, other technical damage was committed by the bears, which included a break of the rising trend-line off of the September lows. 
  • China continues to hold a heavy sway over the markets, erasing the overnight gains the market was sporting. 
  • Extremely volatile market conditions right now; entry timing at this stage is very difficult and very essential to successful trading when this unpredictable. 
  • SPX 30 minute chart shows support at the 1993 level where price is trying to bounce since yesterday afternoon. 
  • VIX rose 14% yesterday to close back over 20
  • T2108 (% of stocks trading above their 40-day moving average) fell 24 points down to 24%. Not an extreme reading yet, and now even below the reading from December.
  • A market rally today should have the objective of closing the gap from yesterday at $203.87.  
  • Potential head and shoulders pattern forming on SPY going back to November of 2014. Though a very sloppy one. 
  • Lots of theories floats around January stock performance, from the first day, first three days, and first week of trading being a barometer for the returns of the rest of the year. I don’t put much weight behind these theories, and find them highly circumstantial.   
  • January has been a very volatile month in recent years to trade. Careful navigating it. 
  • The Nasdaq, for the month of December was stuck in a triangle pattern and formally broke down and below the pattern yesterday. Nasdaq has little support underneath it between current price and the September lows. 

My Trades:

  • Did not add any new swing-trades to the portfolio yesterday. 
  • Did not close any positions, because I didn’t have any positions yesterday.
  • Will watch for possible market reversals today, and/or look to follow the market to the downside with short positions. 
  • Currently 100% Cash
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 1-5-15

    You are unauthorized to view this page.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind