SPX finished higher for a third straight week and the first time it has pulled off such a streak since last November/December.
Interestingly enough SPX closed at 1999.99 on Friday, which came at the chagrin of many holders of weekly call options at 2000.
The tendency of late has been for any pullback to come back to the 10-day moving average before popping again. That could be the case again this week.
Volume was a bit higher on Friday, more so than what was seen over the last two days, but still well below average.
The 200-day moving average for SPX looms large for the market and currently sits at 2023.
VIX showed a slight amount of strength rising 1% to 16.86.
There is a nice rising trend-line off of the October lows on VIX that price is trying to bounce off of right now.
The 2108 (% of stocks trading above their 40-day moving average closed at the highest level since January 2013. The indicator has risen in a manner so parabolic that hasn’t been seen before – and rising 8 straight days. This indicator alone suggests that SPX is due for a pullback this week, even if it is only a mild one.
The latest leg on the SPX 30 minute chart suggests their is extreme exhaustion in the market rising over 75 points without a single pullback.
USO continues to trade higher but nearing resistance at around 9.85-6.
My Trades:
Closed out FLS on Friday at $44.50 for a 3.8% profit.
Closed out NFLX on Friday at $99.50 for a 2.8% profit.
Did not add any new swing-trades to the portfolio on Friday.
Currently 10% long / 90% Cash
Will look to add 1-2 new positions and follow the market’s direction
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