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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
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N.B.
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
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* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...

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Monday, January 30, 2017

SPX: Moving Averages May Hold Key To Short-Term Moves

The voluminous amount of executive orders, press releases and discussions with foreign leaders that has taken place in the White House since January 20th, as well as the extensive media coverage that has been generated, seem to hint that this pace may continue over the next four years.

Because of this, it may be warranted to scrutinize the price actions of the S&P 500 Index, for example, around its 5, 10 and 20-day moving averages, in order to get a sense of the degree to which day-to-day and end-of-month market sentiment may be influenced by political (and Federal Reserve) actions (on a shorter-term basis).

As at mid-day today, the SPX has declined and is currently retesting its 20-day moving average, after breaking out last week above its high-basing pattern from early December last year. The RSI is hinting of future strength, while the MACD and PMO indicators have yet to confirm that (watch for bullish crossovers of these two for such confirmation).

Today's pullback may also be in anticipation of the upcoming Fed rate announcement this Wednesday, as well as normal month-end profit-taking.

A drop and hold below, firstly, the 20-day moving average and then major support at 2250, together with bearish crossovers of all three moving averages and the MACD and PMO indicators, as well as a drop and hold below 50 on the RSI could signal further weakness ahead in the SPX.

Otherwise, price stability around 2250, along with the continuation of a fairly smooth uptrending 20-day moving average, should see prices move higher in the short-to-medium term.

SPX Daily