Another low volume and tight trading range for SPX yesterday.
Volume was on par with yesterday’s light reading and well below recent averages.
Price closed below the declining trend-line as well as below the 200-day moving average for SPX.
Market behavior over the last two trading sessions and a few others before it, where price dips lower in the first 30 minutes of trading and inches higher throughout the remainder of the day.
Today should see an increase in volume due to the FOMC Statement at 2pm and presser at 2:30pm eastern. No one is expecting a rate increase, but should one happen, it would likely create plenty of turmoil for the markets today.
Also, remember that the initial move by the market in response to the FOMC is, more times than not, a head fake.
Dip buyers continue to buy up the market at every turn.
SPX 30 minute chart starting to show some choppiness at the highs.
VIX dropped by 0.5% despite being up over 8% early on in trading.
Meanwhile, T2108 dropped by 4.5% down to 81.3% – still very high and overbought.
A lot of resistance exists between 2020 and 2040 going forward and will pose difficulties for the market.
The next price target for SPX will be to close the massive New Year’s gap down and close over 2044, which impressively enough, would put the market in positive territory for the year.
At the aforementioned 2044 level on SPX, there is a significant amount of resistance that was created during February – August time period of 2015.
My Trades:
Added one new swing trade to the portfolio yesterday.
Did not close out any swing-trades yesterday.
Currently 10% Long / 10% Short / 80% Cash
Remain long JPM at $59.11
Will look to add 1-2 new positions and follow the market’s direction
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