Brief Recap and Updates on the MarketsSPY Charts and some Technical Analysis In Friday's action: Jan. 10, 2020Dow 28823.68 -133.13 (-0.46%)Nasdaq 9178.88 -24.57 (-0.27%)SP 500 3265.35 -9.35 (-0.29%) The stock market closed a bit lower it what we would say was a 'profit taking' kind of day. The S&P 500 dropped 9 points. *See below - we did a make a 'bearish engulfing candle'. News to keep in mind Monday morning: Futures trade vs fair value were trading a bit higher late last night.Dow +57, S&P +6, Nasdaq +23, Russell +2.The biggest factors in the market right now are; the Fed, the Global Economy and Global Geopolitical conflicts/Iran.Keeping an eye on the VIX - The CBOE Volatility Index is back under 13, this is a risk on level. But may spike on any war news/headlines obviously.CHINA TRADE news is still something to be aware of and can create instant volatility.Middle East tensions are going to be a bit higher and in the headlines. Today's Economic Calendar: No major economic releases scheduled 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 lower on Friday in what appears to be a profit taking day. We started higher in the morning with the Dow hitting 29,000 for the first time and then we faded for the rest of the day. This did create a 'Bearish Engulfing' candle on the charts. This pattern sometimes marks a change in trend or top. This candle is created when we start higher than the previous day, but then close lower than the previous day. This does not always mean doom for the current rally. Our biggest problem here is seen on the 9-month chart where we are well over the uptrend line. So we would say heed caution, but not panic and throw in the towel.Keep in mind we have come up a long way and a pause (sideways) or a pullback could happen at anytime. Our support levels remain the same, with the first support level being marked at 320. This level could be used as a 'stop' for some positions if you have a low risk tolerance. Much stronger support is at 310. [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 more active 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/high. The Money Flow is 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 (313.92)(+0.48) and the 200-day MA (295.39)(+0.25) On the 9-month chart below, we remain in an uptrend channel that has lasted now for 7-8 months! Caution though as we are currently above the upper trend line, which is an overbought look. In many cases we drop back down into the channel either by a pullback or by going sideways until under the upper trend line catches up. Nasdaq Composite +2.3% YTDS&P 500 +1.1% YTDDow Jones Industrial Average +1.0% YTDRussell 2000 -0.7% 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.