10 Minute Read

Market Recap January 9, 2017

January 9, 2017

By

MR
MARKET SNAPSHOT
Dow19887.51-76.42(-0.38%)
Nasdaq5531.81+10.76(0.19%)
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

IN THE NEWS HIGHLIGHTS:

  • 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

Today

  • 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.

MARKETS

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

VIX – 11.56

 COMMODITIES

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.

THE DOLLAR

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

 


SOLON’S TRADING THOUGHTS

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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