• SP 500 Market Analysis 9-22-16

Technical Outlook:

  • SPX (SPX) rallied big yesterday as a result of the Federal Reserve deciding to hold off on any interest rate hike until after the election. 
  • Bank of Japan had minimal effect, but it was thew Fed’s “we should hike, but won’t” policy comments that really goosed the market. 
  • SPX rallied to near the 50-day moving average, but failed to break through or even test it at this point. This morning, it is looking at a gap above it. 
  • Resistance had been in the area of 2155 to 2170. That area should be eclipsed this morning. 
  • At this point, the market is bent on re-testing the all-time highs, if not going right past them. The Nasdaq actually established new all-time highs yesterday. 
  • 20-day moving average was also tested yesterday, and SPX broke through it. 
  • Oil (CL/F) continues to rally strong over the course of the last two days and looks to do the same again today. 
  • SPDRs S&P 500 (SPY) saw its volume increase as well as trade above recent averages. 
  • Most impressive yesterday was the absolute meltdown in the VIX taking it down 16.5% to 13.3. A massive change from where it was just a couple of weeks ago. 
  • T2108 (% of stocks trading above their 40-day moving average) saw a large bump higher – rising 39% to 45.54. 

My Trades:

  • Added one new long position to the portfolio yesterday. 
  • Closed SPXU at 23.47 for a 3.1% loss. 
  • Closed QID at 24.51 for a 1.4% loss.
  • May add 1-2 new swing-trades to the portfolio today. 
  • Currently 20% Long / 10% Short / 70% 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 9-22-16

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