Technical Outlook:

  • Another trading session yesterday where S&P 500 (SPX) did not move. Dip buyers came in during the afternoon trading session and rallied the market off of the lows again. spy tightest trading range since 1928
  • Russell 2000 (RUT) continues to make new rally highs, with plenty of strength at the 20-day moving average. 
  • Nasdaq (QQQ) made new all-time highs yesterday.
  • The strength in the market lies in the small caps mainly, while tech specifically continues to outperform large caps in general. 
  • SPX’s 5, 10 and 20-day moving averages continues to further tighten – all within a 3 point range. 
  • SPDRs S&P 500 (SPY) saw a notable increase yesterday, and closing at average levels of late. 
  • Everyday the market shows a willingness to want to sell-off early on. But no matter the extent of the sell-off, the bulls manage to rally the market back to near break even. 
  • Attempts by the CBOE Market Volatility (VIX) has attempted to rally eight straight days, and each time has managed to get crushed before the market close. 
  • Downward channel on SPX 30 minute chart going back to 8/23. Price is right at the cusp of breaking through the upper channel. 
  • SPX is now turning bullish again, although it is still stuck in a short-term trading range. New all-time highs are within arm’s reach, and to add short positions to the portfolio at this point, doesn’t add anything unless the bears can show it can reverse the course of the market from the past two days.spx new all-time highs
  • The market is showing a decoupling from oil as the rise and fall of the commodity in June, July and now August has not impacted the equities market substantially. 
  • Three support levels to watch going forward on SPX is 2168, 2155, and 2147. The breaks are only valid if the price can close below those support levels. 

My Trades:

  • Did not close out any trades yesterday. 
  • Did not add any new trades yesterday. 
  • May add 1-2 new swing-trades to the portfolio today. 
  • Will consider adding additional short positions to the portfolio as the market warrants it.
  • Currently 10% Long / 30% Short / 40% 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 9-8-16

S&P 500 (SPX)

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