• facing head-winds

Technical Outlook:

  • Massive rally on Friday continued the afternoon bounce that was seen on Thursday and looks to continue on again today. 
  • Friday’s bounce had the look and feel of a dead cat bounce to it, especially considering that the volume was insanely low on Friday and well below any of the readings that has been seen so far this month. 
  • Last volume reading that was this low was on 1/5 which was also a dead-cat bounce. 
  • Be careful with trying to get heavily long at this juncture. The bounce appears very suspect at this point. 
  • Resistance on SPY can be found (short-term) between $187-188 area. 
  • Oil is poised to open higher but has gradually been slipping lower throughout the morning. 
  • Still you have a double bottom in play on the daily chart and made even more clear on the 30 minute chart. 
  • SPX reclaimed the 5-day moving average which is the first step in building a longer sustained rally going forward. 
  • A 9.8% drop in VIX yesterday down to 25.4 and off of the recent highs. 
  • Massive increase on T2108, bouncing 35% up to 23.01. 
  • Since making highs on February 1st, the 30 minute chart has formed nothing but lower-highs since. SPX will be looking to establish the month’s first higher-high on this time frame.  
  • Insane price movements every day being created by computer generated trading (HFT’s) in a highly volatile market marked with enormous headline risk. 
  • There is a lot of stop-loss hunting out there in the market, and being agile with getting in and out of positions quickly has been extremely important. facing head-winds

My Trades:

  • Covered SPY on Friday at $185.20 for a 0.9% profit. 
  • Covered QQQ on Friday at $97.30 for a 1.3% loss. 
  • Did not add any new positions on Friday. 
  • Currently 100% Cash
  • I want to see whether this market can hold the current gains since Friday or whether there will be a fade that provides me with an opportunity to short. I’m open to trading in either direction.  
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 2-16-16

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