Technical Outlook:

 

  • SPX rose for the fifth straight day, being saved in the last 5 minutes of trading with a nice pop. 
  • The 5-day moving average continues to hold strong since last Tuesday’s mega-rally. 
  • SPY rallied straight into resistance yesterday at $200’s but didn’t break higher. Volume was low and back to the levels we saw on Thursday and Friday last week. 
  • VIX continues to bounce off of the trend line from the October lows. 
  • Some consolidation on the 30 minute chart that is creating a descending triangle pattern.
  • The trend-line off of the February lows is still holding strong. A move today below 1989 would break it on SPX
  • Watch the 10-day moving average today which should fall somewhere around 1970. This has been a strong rallying point for the bulls since the rally began off of the 2/11 lows. 
  • T2108 (% of stocks trading above their 40-day moving average) is trading at 85.87 which is now the highest level it has been trading at since February 2012. 
  • SPX crossed back over the 2000 level for the first time since early January. 
  • The 200-day moving average for SPX looms large for the market and currently sits at 2022.
  • Oil continues to breakout, popping another 4.8% yesterday and rising for the fifth time in the last six trading sessions on above average volume. It was the first legitimate higher-high for the commodity (USO) since May of 2015. 
  • My Trades:

  • Added one new swing position to the portfolio yesterday (short)
  • Did not close out any positions yesterday. 
  • Currently 10% long / 10% short / 80% Cash
  • Remain long GLD at $119.64.
  • Will look to add 1-2 new positions and follow the market’s direction 
  • Chart for SPX:

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