Technical Analysis:

  • Massive move yesterday considering the market was in a limit down scenario on the futures market in the early morning hours.
  • Reversal saw defense, biotechs, banks and infrastructure soar with a Donald Trump Presidency. 
  • One area of concern is the massive volume spike seen on SPDRs S&P 500 Trust (SPY) as these isolated volume spikes tend to lead to major market reversals immediatly thereafter. See Brexit volume/price activity for an example. 
  • Declining trend-line off of the Deptember highs was broken yesterday on S&P 500 (SPX) as was the 50-day moving average. 
  • Technology stocks are showing some stagnation with the Trump victory. 
  • Yesterday had extremely poor breadth as there were nearly just as many declining issues as there were advancing ones. 
  • It is a near certainty at this point, that the Federal Reserve will be raising interest rates at their next meeting in December. 
  • CBOE Market Volatility Index (VIX) was pummelled yesterday with a 213.3% decline, and dropping from the highs of the day in the 21’s, all the way down to 14.38. 

My Trades:

  • Covered SPY at $215.43 for a 1.2% loss. 
  • Added two new swing trades to the portfolio yesterday. 
  • Will look to add 1-2 new swing-trades to the portfolio today. 
  • Currently 10% Long / 20% Short / 70% Cash

Chart for SPX:

SP 500 Market Analysis 11 10 16

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