• Price pushing higher

Price pushing higher

Technical Outlook:

  • Mild rally but quality follow through after the epic rally on Tuesday. 
  • SPX is headed for a showdown with key price resistance at the 1990 level. A break through of that level likely sends price up to around the 2020 level. 
  • Volume was extremely light on SPY and the lightest since 2/18. That goes without saying that volume also came in well below recent averages. 
  • While the rally has been a nice one off of the February lows, you have to keep one eye open for a potential reversal considering the resistance that is overhead and where we have already been so far this year. 
  • On the flip side, even though it flies in the face of what has taken place to-date, you can’t rule out the possibility that the lows for the year could already be established (thought I don’t share that view point). 
  • VIX continues to drop hard and signifies that volatility is easing in the current trading environment. 
  • T2108 (% of stocks trading above their 40-day moving average) continues to sky rocket to a close of 75.68% – a mark that hasn’t been attained since October 2013. Very concerning in that there little room left overhead at this point. 
  • SPX 30 minute chart is undoubtedly getting over-extended since 2/24 and would expect the trend-line to flatten out some if not eventually pullback. 
  • S&P 500 is trying to close out its third consecutive week of gains – the likes of which hasn’t been seen since late November/early December. 
  • USO has a showdown with the 50-day moving average today. It rallied yesterday but failed to break through this level. 
  • SPX is now trading above the 5, 10, 20, and 50-day moving averages. 
  • February marked the third month in a row SPX has finished lower on a monthly basis. This hasn’t happened since the summer sell-off of 2011. 

My Trades:

  • Added two new long positions to the portfolio yesterday. 
  • Did not close out any positions yesterday. 
  • Currently 20% long / 80% Cash
  • Will look to add 1-2 new positions and follow the market’s 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 3-3-16

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