• SP 500 Market Analysis 3-18-16

Technical Outlook:

  • Strong follow through yesterday with increased volume, higher than the previous day’s breakout. 
  • SPX actually traded temporarily in positive territory for the year yesterday. 
  • The Dow Jones Industrial has risen 11 out of the last 13 days. Its ETF (DIA) is up 11 out of the last 12 days and up 7 straight days. 
  • SPX is looking at closing higher for the fifth straight week in excess of +1%. The last time this happened was in March of 2009, which rose over 28.5% off of those March lows. 
  • VIX has dropped more than 45% in the last 5 weeks – the largest 5 week drop in its history. 
  • T2108 rose another 3% yesterday to 86%. 
  • The FOMC Statement was a game changer on Wednesday and creates a much more accomodative market for risk. Ideally though, a pullback of 1-2% at the least, would help with finding high quality, and favorable reward/risk setups. 
  • That is the biggest issue surrounding this market at this time. Reward is just on par with risk. 
  • Strong rising trend line off of the 2/11 lows with consistent lower-highs, but flatter higher-highs. 

My Trades:

  • Did not add any new swing-trades yesterday. 
  • Did not close out any trades yesterday. 
  • Currently 100% Cash
  • Careful to add long exposure considering that the market is up the most it has ever been in years. A pullback, not necessarily a major one is in order here. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 3-18-16

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