Technical Outlook:
- Extremely dovish and extremely unexpected FOMC Statement yesterday that cut the yearly outlook of 4 additional rate hikes down to 2 additional rate hikes.
- As a result, Yellen, by cutting the number of rates for the year, essentially gave the market the equivalent of two rate cuts yesterday.
- Be careful today, because a lot of the central banking actions of late, including the recent Draghi decision has resulted in next day reversals.
- 200-day moving average was broken yesterday, and the down trend off of the December highs was broken too.
- Bascially S&P 500 is now trading above all the major moving averages.
- SPY (NYSE:SPY) volume picked up for the second straight day, but even with a FOMC announcement, was still below recent averages.
- VIX saw a major move yesterday that resulted in the VIX dropping below the rising trend-line off of the October lows, dropping a big -11% down to 14.99.
- USO (NYSE:USO) coiling at recent highs popping 5% yesterday.
- Divergence in IWM, as yesterday's move failed to make new rally highs.
- T2108 at 83.5%rising only 2.8% yesterday.
- S&P 500 looking to close in on breakeven for the year. At 2044 level on S&P 500, there is a significant amount of resistance that was created during February - August time period of 2015.
My Trades:
- Did not add any new swing-trades yesterday.
- Closed out JPMorgan Chase & Co (NYSE:JPM) at $59.12 for a flat trade.
- Closed out Direxion Daily S&P 500 Bear 3X Shares (NYSE:SPXS) at 16.28 for a 2.5% loss.
- Currently 100% Cash
- Will look to add 1-2 new positions and follow the market's direction
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