Current Long Positions (stop-losses in parentheses): TICC (8.64)

Current Short Positions (stop-losses in parentheses): None

BIAS: 3% Long

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

  • Futures are currently break-even.
  • No major news events scheduled for today.
  • Bulls failed to push through the upper-line of the downward channel.
  • We are basically stuck in a trendless market.
  • Wedge forming on the S&P where a breakout/breakdown would signify a major shift in market sentiment.
  • Difficult to take yesterday’s sell-off serious considering the light holiday volume and the overbought nature of the market.
  • Some significant resistance levels overhead for the bulls: 200-day moving average at 1,115. The infamous 1,130 level is the most significant price level for the bulls to break through.
  • The 1,104 price level will be what I am watching today.
  • Bears need to aim for the 1,080/50-day moving average, and ultimately breaking the ultra-stubborn 1,040 price level.

Actions I Will Be Taking:

  • Tried to short SPY yesterday, but the market never provided me with a descent opportunity to do so.
  • May look to establish a 3-5 day short position off of current overbought conditions.
  • I am careful about establishing any significant short position since we essentially created a higher-low in the market by never breaking the 1040 level.