• SP 500 Market Analysis 10-20-15

Technical Outlook:

  • Despite weakness early, dip buyers came in and rallied the market back to break even with a last minute spike in the trading session to put the market in positive territory. 
  • Essentially there are three resistance levels to watch: 1) Lower channel, range resistance at 2040 as shown below, 2) Declining resistance off of the July highs, which currently sits at 2039, and 3) 200-day moving average which also coincides with SPX’s break even level. 
  • SPY volume has declined for the second straight day and was nearly non-existent yesterday. 
  • Continue to watch the 10-day moving average going forward – there has been multiple occasions where SPY has bounced off of this level. 
  • VIX finished slightly lower at 0.5% to finish just below 15. 
  • SPX has undoubtedly cooled off some from its meteoric rise from earlier this month. However, this is expected and quite common even in the strongest of rallies. The upward moves going forward will be more measured and less euphoric. 
  • On the weekly SPX chart, there is a nice double bottom that has formed and strong upward momentum playing out.  
  • SPX 30 minute chart has a nice layer of consolidation at its recent highs. 
  • The Fed has never raised interest rates at a point where the market was trading lower on the year. 


My Trades:

Chart for SPX:

SP 500 Market Analysis 10-20-15

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