• SP 500 Market Analysis 9-20-16

Technical Outlook:

  • S&P 500 (SPX) gave up all of its mornings gains yesterday to close flat on the day. Today looks to be setting up in the AM in a similar fashion as the futures are popping higher. 
  • The trend these days is to ignore Crude (/CL) when it is trading lower, and to rally when it manages to rally. Oil is down prior to the start of the equities market opening, and as a result, the market is ignoring it. 
  • SPX continues to trade in a tightening range following the 9/9 sell-off. Tomorrow, the Bank of Japan and the Federal Reserve will announce their own monetary policy decisions, and it will rock the market in one direction or the other. 
  • Volume on SPDRs S&P 500 (SPY) was incredibly weak on Monday, and was hal f of what we saw on average last week. The reading also came in below recent averages. 
  • The SPX rising trend-line off of the February lows still remains a possible destination for this market. A test would occur at 2115. Overhead, there is plenty of resistance in the 2155 to 2170 area. 
  • This market could still easily reverse back down again, though I think the bears have missed a golden opportunity over the last week, to push this market lower. 
  • If SPX continues to move higher today, it will find some heavy short-term resistance in the 2160-75 area that it will have to deal with. 
  • Crude (/CL) looks to break the September lows and likely move on toward the August lows.

My Trades:

Chart for SPX:

SP 500 Market Analysis 9-20-16

You Might Like

  • South Korea and its impact on the US stock market.

    South Korea: The Hidden Driver of US Tech Volatility

  • 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