Brief Recap and Updates on the MarketsSPY Charts and some Technical Analysis In Tuesday's action: Oct. 22, 2019Dow 26788.10 -39.54 (-0.15%)Nasdaq 8104.30 -58.69 (-0.72%)SP 500 2995.99 -10.73 (-0.36%) The S&P lost 10 points as a bit more uncertainty about Brexit caused traders to take a step back. UK lawmakers endorsed Prime Minister Boris Johnson's deal, but voted against a speedy timetable to approve Brexit legislation in the next three days. The news caused a knee-jerk reaction to the downside for equities. News to keep in mind Wednesday morning:* After the bell on Tuesday chip/semi stocks got hit as a bad earnings report and guidance from $TXN - Texas Instruments hurt the tech sector. The Nasdaq will open weak to start the morning. * Futures trade vs fair value were lower late last night. Dow -44, S&P -8, Nasdaq -50, Russell -2.The biggest factors in the market right now are; Global Economy, China trade talks, Fed speak, and the US Treasury markets.Keep an eye on the VIX - The CBOE Volatility Index is under 15. This is a level at which usually means risk on.CHINA TRADE WAR is still an ongoing drama! Today's Economic Calendar: 7:00 AM ET: The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.9:00 AM: FHFA House Price Index for August 2018. This was originally a GSE only repeat sales, however there is also an expanded index.During the day: The AIA's Architecture Billings Index for September (a leading indicator for commercial real estate).THE CHARTS: (NOTE: Charts are a good guide but when a tweet or news item can jerk the markets around, they mean a bit less.) The markets ended a bit lower on Tuesday with a change to our charts. A 'Bearish Engulfing Candle' was formed. This makes the chances for a little pullback probable. Right on time, seeing the chip stocks sink due to a bad earnings report/guidance from TXN. Even with that, the current set-up under 'normal conditions' is still telling us the next move is up or sideways. We notice the 20, 50, and 200 day moving averages are all in alignment and appear ready for the market to move higher. But even so, we do remain a bit cautious and would not go all-in or use excessive margin. We are still above our 294 support level and still having trouble getting back over 300. So stuck in the 294-300 trading range, although we may make an attempt to push over 300 this week or next. But as always lately keep an eye on the trade headlines, political news, etc. The Vix is under 15, but we still expect some volatility to stay with us as long as trade discussions, political news, and tweets can change the market's temper in a second. On a positive for the markets, the Fed is starting a QE type program which could help inflate stocks, the Brexit saga maybe finally coming to an end, and the China trade war has become less messy. We would still be using caution and taking some profits (on a case by case basis depending on your own risk tolerance). We also would take a few new starter size positions in names beaten down or offering good value (also depends on your own risk tolerance). The MACD is positive/flat. The Stochastics are high. The Money Flow is negative. We are above the 50-day MA. The 20,50,200 day moving averages are in a positive alignment. The 50-day MA (293.89)(+.25) and the 200-day MA (284.50)(+.24) On the 9-month chart below, we are in a large trading range of 282 to 300 featuring what appears to be a double top. Can we break above that 300 level? Nasdaq Composite +22.1% YTDS&P 500 +19.5% YTDRussell 2000 +15.0% YTDDow Jones Industrial Average +14.8% YTD $SPY $DIA $IWM $QQQ Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. (Sign-up if you haven't already done so). Follow us/bookmark us and check back occasionally for additional articles or comments on our page... Wild Tiger Trading - start/main page With our Daily Trackdowns, check back for additional analysis/observations during the trading day in the comments by us or our readers.