Brief Recap and Updates on the MarketsSPY Charts and some Technical Analysis In Friday's action: Jan. 3, 2020Dow 28634.79 -233.92 (-0.81%)Nasdaq 9020.79 -71.42 (-0.79%)SP 500 3234.85 -23.00 (-0.71%) The Stock market closed lower after a U.S. airstrike kills an Iranian top military leader and the ISM Manufacturing Index for December came in a bit weaker than expected. The S&P 500 lost 23 points. News to keep in mind Monday morning: Futures trade vs fair value were trading lower late last night due to the U.S. and Iran conflict worries.Dow -142, S&P -16, Nasdaq -51, Russell -9.The biggest factors in the market right now are; the Global Economy and Global Geopolitical conflicts.Keeping an eye on the VIX - The CBOE Volatility Index is still under 15, this is a risk on level.CHINA TRADE news is still something to be aware of and can create instant volatility.Middle East tensions are going to be higher and in the headlines. Today's Economic Calendar: Reis Q4 2019 Office Survey of rents and vacancy rates. 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 much lower on Friday as the market sold off on the news about the Iranian general. With the move our charts did not show any changes and the day before we had a big up day. The Money Flow remained positive. The only thing that could be of concern is the MACD did weaken a little bit. Besides the headline risk, we do keep our caution message in play. Although we are still inclined to buy the dips 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 points at SPY 317.50 and 314 as the support levels to watch. 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 is a bit higher due to the geopolitical events, but is still low enough to be considered in a 'risk-on' area. The MACD is positive. The Stochastics are neutral. The Money Flow is slightly positive. 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 (311.48)(+0.50) and the 200-day MA (294.20)(+0.23) 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 +0.5% YTDDow Jones Industrial Average +0.3% YTDS&P 500 +0.1% YTDRussell 2000 -0.5% 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.