• S and P 500 Market Analysis 12-24-12

Pre-market update (updated 9am eastern):

  • Europe is trading -0.1% lower.
  • Asian markets traded mixed and -0.2% lower. 
  • US futures are trading slightly lower. 

Economic reports due out (all times are eastern): None

Technical Outlook (SPX):

  • Major sell-off on Friday, that saw the SPX dump nearly 1% in value. 
  • Volume was strong Friday, due in part to options expiration and also some panic selling in the  early going. 
  • Price on the SPX is testing the uptrend off of the November lows. Any close lower today, would effectively break that trend-line. 
  • For this market to turn decisively bearish, we need a close below 1411. 
  • Also there is some declining resistance overhead that could be causing some problem in the market breaking significantly higher. 
  • Expect volume to be next to nothing today and throughout this week. 
  • The thought is, if the House can’t pass their own Plan B, how will it ever pass a compromise between between Boehner and Obama. 
  • VIX is closing in on 18. However, for the amount that we dropped on Friday, the VIX was barely up. Not a good sign for the bears. 

My Opinions & Trades:

  • Did not buy or sell any stocks on Friday.
  • Updated stop-loss in BSBR. 
  • On a shortened weak on light volume, I don’t expect to do anything with today’s market. I’ll let me stops do the working. 
  • Remain long EW at $91.01, BSBR at $7.03, ADS at $144.99, WYNN at $113.57
  • Here is my real-time swing-trading portfolio and past-performance

Chart for SPX:

S and P 500 Market Analysis 12-24-12

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