• SP 500 Market Analysis 9-16-16

Technical Outlook:

  • Huge bounce on S&P 500 (SPX) yesterday that put in a strong case for a short-term bottom being formed at 2120. 
  • The rally yesterday took price back above the 5-day moving average which is something the index has been unable to do over the past week.
  • SPY volume increased yesterday from the day prior and remains well above recent averages. 
  • The price action around the 2120 level and yesterday’s bounce that we saw, reminds me a lot of the bounces we saw at the 2040 level back in April and May, and all throughout 2015. 
  • Because of the rally in Apple (AAPL), the Nasdaq (QQQ) finds itself in a very favorable situation. It has bounced substantially off of the 50-day moving averages and on through the 5, 10 and 20-day MA’s as well. This is by far the strongest of all the indices right now and allowing the market to stave off another sell-off attempt. 
  • The market is choppy, you have to go with the ebbs and flows of it – I don’t recommend being heavily long or short at this moment. 
  • CBOE Market Volatility Index (VIX) took a beating yesterday dropping 10% down to 16.30. But nothing like what we saw on Monday’s rally in equities. 
  • This market could still easily reverse back down again, though I think the bears have lost a great deal of momentum here with yesterday’s move. 
  • 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:

  • Sold XYL yesterday at $50.33 for a 2.3% profit. 
  • Covered T yesterday at $40.22 for a 1% profit. 
  • Sold SPXU yesterday at $24.13 (flat trade)
  • Covered GOOGL at $802.05 for a 1.5% loss. 
  • Added 3 new swing trades to the portfolio yesterday. 
  • Remain short: TGT at $70.30
  • May add 1-2 new swing-trades to the portfolio today. 
  • Currently 30% Long / 10% Short / 60% 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 9-16-16

You Might Like

  • 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

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind