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Today's Trackdown: Thursday - Dec. 6, 2018

  • Brief Recap and Updates on the Markets
  • SPY Charts and some Technical Analysis

In Tuesday's action:

The S&P 500 tumbled 90 points on Tuesday, due to concern about the trade negotiations between the U.S. and China and concern over future economic growth.

News to keep in mind Thursday morning:

  • Futures trade lower - Dow down about 300 early last night.
  • Keep an eye out for any trade headlines or political risks.
  • Keep an eye on the VIX - it has been dropping but surged up on Tuesday to get over 20 again.

Today's Economic Calendar:

Dec 06  08:15  ADP Employment Change
Dec 06  08:30  Productivity-Rev.
Dec 06  08:30  Trade Balance Oct
Dec 06  08:30  Unit Labor Costs - Rev.
Dec 06  08:30  Initial Claims 
Dec 06  08:30  Continuing Claims
Dec 06  10:00  Factory Orders Oct 
Dec 06  10:00  ISM Services Nov
Dec 06  11:00  Crude Inventories

The SPY charts are pictured below. The first is a 4-month chart followed by a longer-term 9-month chart.

The markets finished much lower on Tuesday after a late day nosedive. The technicals suffered damage a day after breaking back above the 50-day moving average, we broke back down through  the 50-day and 200-day moving averages. Resistance levels are now at 280 and both of the moving averages. Support possibly 264ish.

The MACD is neutral. The Stochastics are high and rolling back down. The Money Flow  is slightly positive, but headed downwards.

Thursday and Friday will be about finding support levels and trying to figure out why such a steep decline occurred.

Happy Trading!

On the 9-month chart, the nice channel from April to September has been shown. This trend/pattern was broken to the downside. Awaiting the emergence of the next pattern. The 200-day moving average (274.46) and 280 are the resistance levels. We will have to see where we can find support, my next level to consider is 264/265ish.

  • Nasdaq Composite +3.7% YTD
  • Dow Jones Industrial Average +1.3% YTD
  • S&P 500 +1.0% YTD
  • Russell 2000 -3.6% YTD

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.

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