S&P 500 (SPX) experienced a light amount of selling yesterday, forming a doji candle pattern after establishing intraday all-time highs, yet again.
The Dow Jones Industrial Average (DJIA) is up 21 of the last 25 days (84% win rate). It was the only index among the big four that finished higher yesterday.
The Federal Reserve will release its FOMC Statement tomorrow, which is almost certain to raise interest rates. The market has rallied very hard over the past month – in particular with the banking sector. If there was ever a moment to be concerned with a “sell-the-news” moment for the market, this would be it.
That doesn’t mean we’ll see the markets sell-off, but the possibility of it happening is greatly enhanced, especially when you consider how much the market sold off last year following the December rate hike.
I don’t plan to go into the FOMC Statement with a strong bias.
The CBOE Market Volatility Index (VIX) popped 7.6% yesterday and is higher 3 out of the last four days, indicating some concerns for the market under the surface.
Light Sweet Crude Oil Futures (/CL) looks to continue yesterday’s rally. Though it gave back a good chunk of yesterday’s gains, it still managed to trade at its highest level since July of 2015. Careful, considering yesterday’s candle, that you could be seeing a blow-off top unfolding.
SPX 30 minute chart is showing some signs of slowing down as it manages to consolidate yesterday, following the major move of the past week.
Weakness in tech, relative to the rest of the market is still apparent and real.
Volume on SPDRs S&P 500 (SPY) picked up some steam yesterday with trading volume coming in above average.
My Trades:
Sold Suntrust Banks (STI) at $54.18 on Friday for a 1.7% profit.
I added a short position as a hedge against my existing long positions.
May look to add some additional short exposure as a hedge against current positions.
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