Brief Recap and Updates on the MarketsSPY Charts and some Technical Analysis In Tuesday's action: Dec. 31, 2019Dow 28538.35 +76.30 (0.27%)Nasdaq 8972.63 +26.61 (0.30%)SP 500 3230.78 +9.49 (0.29%) The Stock market closed 2019 on high note with the S&P up 9 points. The S&P 500 ends the year with a 29% gain. President Trump said Phase One trade deal will be signed on Jan. 15 at the White House. News to keep in mind Thursday morning: Futures trade vs fair value were trading higher late last on positive economic news from China.Dow +78, S&P +7, Nasdaq +32, Russell +5.The biggest factors in the market right now are; the Global Economy, China trade deals, Fed speak, and the US Treasury markets.Keeping an eye on the VIX - The CBOE Volatility Index is down under 14, this is a full risk on level.CHINA TRADE news is still something to be aware of and can create instant volatility. Today's Economic Calendar: 8:30 AM: The initial weekly unemployment claims report will be released. The consensus is for 227,000 initial claims, up from 222,000 last week. 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 higher on Tuesday as the two day dip got bought. The short-term overbought condition of the Stochastics is past us now. Keep an eye on the Money Flow, it has come down to a neutral. The markets did need a reset/pullback. We are still inclined to buy the dips currently as long as our support levels hold. We would use these support levels as 'stops' for some of our positions. We use the last breakout point at SPY 314 as a possible support level to watch, as well as 317.50. For those looking for a tight stop, 320 could be used. [Repeated] We still view the current set-up under 'normal conditions' is still telling us we should continue to move sideways or up. We notice the 20, 50, and 200 day moving averages are all in alignment and are all moving higher. The current price is also above the 20, 50, 200 MAs, which is good. BUT - Keep in mind and how far we have risen and how fast we have gotten this high, a bit of caution is needed. Although at the same time, there is nothing saying we won't just keep drifting to new highs for the rest of the year and start of the next. As we previously written, you can let winners run, but we would not use excessive margin or open any new large positions. [/Repeated] The Vix has spiked the last two trading days, but is still under 15. Which is still risk on for the markets. The MACD is positive. The Stochastics are neutral. The Money Flow is neutral, but had been declining *CAUTION*. We are above the 50-day MA. The 20,50,200 day moving averages are in a positive alignment and heading higher. The 50-day MA (310.45)(+0.50) and the 200-day MA (293.74)(+0.22) On the 9-month chart below, we remain in a wide uptrend channel that has lasted now for 6 months! Caution though as we are above the upper trend line now, which is an overbought look. In many cases we drop back down into the channel. Nasdaq Composite +35.2% YTDS&P 500 +28.9% YTDRussell 2000 +24.0% YTDDow Jones Industrial Average +23.8% YTD $DIA $SPY $QQQ $IWM 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.