10 Minute Read

Market Recap January 9, 2017

January 9, 2017


SP 5002268.90-8.08(-0.35%)
10-yr Note+13/322.372
NYSEAdv 1070Dec 1891Vol 1.03 bln
NasdaqAdv 1269Dec 1700Vol 1.72 bln


  • US equities markets are split.
  • Crude oil under pressure.
  • U.S. Dollar Index sold off.


RECAP– The US equities markets were split today with the Dow and S&P closing lower while the Nasdaq recorded a moderate gain. Crude oil sold off sharply erasing the last 3 days of gains. The US dollar also sold off which allowed gold and silver to bounce back.

In-depth look of daily news at Briefing.com (CLICK HERE)

In-depth look at after hours movers (CLICK HERE)

Economic Calendar


  • Nothing major today.


Upcoming Reports

  • January 10: JOLTS Job Openings
  • January 11: Crude Oil Inventories
  • January 12: Unemployment Claims
  • January 12: Fed Chair Yellen Speaks
  • January 12: Core Retail Sales m/m
  • January 12: PPI m/m
  • January 12: Retail Sales m/m
  • January 12: Prelim UoM Consumer Sentiment


FedWatch February 1 Rate Hike Probability for January 9: 2.0%  (View the probability chart here)

A Look At The S&P 500 Chart – KEY Levels

  • RSI is above 50.
  • On Balance Volume is at its moving average.
  • Price action has outpaced its moving averages.
  • This chart is overextended. There has been a run up of nearly 200 points or roughly 10% since its low in November.
  • Very early, but this looks like a potential double top should it form. The break-line for support is located at 2230. The next level of support would be located around 2190-2180.


A Look Into the Heat Map

The market clearly bearish on the day. Technology and Healthcare were the only bullish sectors holding the market up.


(click on symbol for chart)
SPX –  Bullish
Nasdaq Bullish  
Russell  Bullish  

VIX – 11.56


Oil (USO) –  Bullish 
Ag (DBA) – Bearish
GLD –  Bearish – Gold has been in a “relief rally” following months of constant selling. It should continue to fade higher as the US dollar retracements. By no means am I bullish on Gold or Silver as they are still in a long term bearish trend and this is more of a temporary retracement. I would like to see a bottoming pattern before changing my bias.
SLV –  Bearish – Same as gold.


UUP USD weighted ETF –  Bullish – The bullish momentum has slowed in the US Dollar and has been consolidating in this area.



The market was mixed today, although most sectors were bearish. A lot of the bullish momentum has drained out of the market at this point. I’m very cautious at these levels because we have seen a historic rally without much of a correction. Also, when I see a chart that looks like this which is overextended, the first thing I think of is a reversal. It is still way too early to call it an “M” reversal pattern, but should it drop a little further, I am eyeing 2230 as a critical breaking point. Volatility is very low, so this is a good area to buy puts on a portfolio. I would also favor calendar spreads instead of credit spreads as a way to hedge myself against volatility risk.

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