Brief Recap and Updates on the MarketsSPY Charts and some Technical Analysis In Wednesday's action: Jan. 2, 2020Dow 28868.71 +330.36 (1.16%)Nasdaq 9092.21 +119.58 (1.33%)SP 500 3257.85 +27.07 (0.84%) The Stock market started 2020 with a bang as the major indices all set new record highs. The big caps had an outstanding day, but be aware that the small-caps underperformed. News to keep in mind Friday morning: Futures trade vs fair value were trading lower late last after the U.S. killed an Iranian general in Baghdad.Dow -170, S&P -20, Nasdaq -60, Russell -12.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 13, this is a full 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: 10:00 AM ET, ISM Manufacturing Index for December. The consensus is for the ISM to be at 49.0, up from 48.1 in November. 10:00 AM, Construction Spending for November. The consensus is for a 0.3% increase in construction spending. All day, Light vehicle sales for December. The consensus is for light vehicle sales to be 17.0 million SAAR in December, down from 17.1 million in November (Seasonally Adjusted Annual Rate). 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 higher on Thursday as the new year started off with a bang. New all-time highs were made and we turned the Money Flow to a positive at least for now. Futures are taking a hit on news of an airstrike killing an Iranian general. Our caution message is still 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 has dropped back down the last two trading days and is back under 14. Which is risk on for the markets. The MACD is positive. The Stochastics are neutral. The Money Flow is now 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 (310.98)(+0.53) and the 200-day MA (293.97)(+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 +1.3% YTDDow Jones Industrial Average +1.2% YTDS&P 500 +0.8% YTDRussell 2000 -0.1% 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.