Traders Corner   4 comments

In the era of QE, first trading days of the month have typically been positive days for the S&P 500. However, December gave us one of the few negative days, dropping from 1805 to 1800. But I think that was mostly due to caution in sentiment surrounding what the Fed was going to do at their December meeting. Of course, we still have that question about January’s meeting hanging over the markets. Will the Fed automatically cut back QE this month, or wait and see what happens with the economy?

As for the technicals, it is rare to see daily and weekly technicals saying the same thing, but the RSI and the Williams %R are flashing overbought in both views. I view this as a yellow light signal, meaning there is a correction or an extended sideways move coming, but it doesn’t mean it will be today. With the McClellan Oscillator at an elevated level, 43, but not overbought (at 60), we still have room to go up.

At the moment, S&P 500 futures are flat to the negative side, with March futures targeting 1838. Anything is possible today, although my gut feeling leans towards the positive side.

The S&P 500 levels to watch today:

UPSIDE: 1849 (December 31st’s high, December’s high and the all-time high), and 1855 (top of the Bollinger Bands).
LAST CLOSE: 1848.
DOWNSIDE: 1844 (December 27th’s high), 1841-1842 (4 data points), 1838 (December 30th’s low), 1833-1834 (2 data points), 1828-1829 (2 data points), 1822-1823 (2 data points), 1810-1813 (5 data points and November’s high), 1808 (December 10th’s high), 1806 (2 data points), 1808 (20 day moving average), 1788 (50 day moving average), 1775 (October’s high), 1767 (December’s low), and 1761 (bottom of the Bollinger Bands).

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4 responses to “Traders Corner

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  1. Bought a small position in UCO this morning at 31.07. Hoping for a little bounce before I look at selling calls.

  2. Sold my himx this morning at 14.14 for a nice 58% gain over two months. Still like company, just believe stock is a bit over bought. With sale of himx athm and tc over past week I am building a large cash position.

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