Today's Trade: The Market's Fight Song -

Today’s Trade: The Market’s Fight Song

Mar 17, 2016Jeremy ParkinsonFinance0

Technical Outlook:

Extremely dovish and extremely unexpected FOMC Statement yesterday that cut the yearly outlook of 4 additional rate hikes down to 2 additional rate hikes.

As a result, Yellen, by cutting the number of rates for the year, essentially gave the market the equivalent of two rate cuts yesterday.

Be careful today, because a lot of the central banking actions of late, including the recent Draghi decision has resulted in next day reversals.

200-day moving average was broken yesterday, and the down trend off of the December highs was broken too.

Bascially SPX is now trading above all the major moving averages.

SPY volume picked up for the second straight day, but even with a FOMC announcement, was still below recent averages.

VIX saw a major move yesterday that resulted in the VIX dropping below the rising trend-line off of the October lows, dropping a big -11% down to 14.99.

USO coiling at recent highs popping 5% yesterday.

Divergence in IWM, as yesterday’s move failed to make new rally highs.

T2108 at 83.5%rising only 2.8% yesterday.

SPX looking to close in on breakeven for the year. At 2044 level on SPX, there is a significant amount of resistance that was created during February – August time period of 2015.

My Trades:

Did not add any new swing-trades yesterday.

Closed out JPM at $59.12 for a flat trade.

Closed out SPXS at 16.28 for a 2.5% loss.

Currently 100% Cash

Will look to add 1-2 new positions and follow the market’s direction

Chart for SPX: