Technical Outlook:

  • Despite a slight pullback over the past four days, SPX has managed to put in somewhat of a bull flag pattern on the daily. Today i t is looking to gap out of it and out to new highs on the current uptrend. four wheel drive climb market rally
  • Yesterday was an extremely volatile session following the ECB decision and Mario Draghi remarks with moves in excells of +/- 1% all throughout the day. 
  • Massive doji formed on SPX and SPY to close out the day. This often reflects indecision by the market but apparently that indecision is trying to be resolved in an upward manner today. 
  • Declining resistance off of the 12/1 highs may be tested today at 2019. 
  • Also at the same levels would mark a test of the 200-day moving average. 
  • VIX with a wild doji yesterday as well, but managed to drop 1.6% down to 18.05.
  • T2108 (% of stocks trading above their 40-day moving average) is still astronomically highat 80.3%. This is about as high of a reading as you can get (typically). and considering it has been achieved in the last 1.5 months (the extremely January lows) is even more staggering. 
  • SPY volume levels were very strong yesterday, and the highest seen since 2/11. 
  • (Repeat advice from yesterday) Don’t go guns-a-blazin after this market today. While the recent trend favors it finishing higher, there is a possibility with the market being so overbought, with today being an exhaustion gap that sucks in the bulls only to send the market lower. 

My Trades:

Chart for SPX:

SP 500 Market Analysis 3-11-16

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