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Today's Trackdown: Wednesday - May 15, 2019

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

In Tuesday's action:

The stock market began the day higher on friendly trade chatter between the U.S. and China. The market liked that both sides expressed intentions to continue to work on a trade deal, which helped foster a belief that the recent dip in stocks was a good buying opportunity. The S&P closed 22 points higher.

News to keep in mind Wednesday morning:

  • Futures trade vs fair value were slightly higher late last night. Dow +89, S&P +8, Nasdaq +31, Russell +4.
  • 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 spiked again Monday, but did not break higher than last weeks highs. On Tuesday the Vix dropped. This is a possible signal the pullback/panic selling is coming to an end.
  • CHINA TRADE WAR is back on - Shaking up the markets again.
  • PACKED Economic Calendar Today!

Today's Economic Calendar:


Quick Notes:  (none)


THE CHARTS:

The markets were a bit higher on Tuesday. The technicals have taken some hits lately. Most notable is the MACD which is in a steep decline now. The Stochastics though appear to have bottomed and ready to cycle higher.

285 level which I had considered support got broken on Monday. Our next support is our stronger 280 level. 280 must hold or their will be technical damage to the markets.

I expect 280 will hold up, if for some reason is does not, the next support is down at 275 with the 200-day MA.

The 50-day moving average was broken down through Monday which accelerated some of the losses. The 50-day and 200-day MAs will need to be watched now more closely.

The MACD is declining. The Stochastics are neutral/low but may have bottomed. The Money Flow is still positive.

The 50-day MA (285.61)(+.11) and the 200-day MA (275.26)(+.02)

On the 9-month chart below, the previous patterns are behind us. Shown now is the support levels at 280 and the resistance now at 290. If we hold the 280 level, we will stay in a 280-290 trading range for awhile.

  • Nasdaq Composite +16.6% YTD
  • Russell 2000 +14.4% YTD
  • S&P 500 +13.1% YTD
  • Dow Jones Industrial Average +9.5% 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.

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