Chart Talk

Here's a chart of the S&P 500's ETF {SPY}.  What I've shown in highlights above is how it's traded over approximately the last year.  You can see that it has carved out a trading range of 260 on the low side and 285 near its top.  Right now we are trading near the low end of this range, although not appreciably lower than where we were a month ago.  Also these same levels were tested in February and April.  Investors will anxiously watch whether the lower part of this range will hold this week.   We are becoming more oversold and if there is going to be a Santa Claus rally it should begin this week.  However, I must warn you that the market is a slave to headlines right now.  In particular, it is anxious about progress on a trade deal with the Chinese.  These headlines oscillate between positive and negative while the President can't seem to ever put his Twitter account away.  As such, it is very hard to predict how the trading action might progress as we close out the year.

Most of Wall Street has seen a miserable 2018 and trading desks will start to shut down for the holidays after next week so the action could see the rise of further volatility in the meantime.

Back Wednesday.

The chart above is from Tradingview.com although the annotations are mine.  You can make it larger by double-clicking on it.

*Long ETFs related to the S&P 500 in client and personal accounts.  Please note positions can change at any time    We reserve the right to change these investments without notice on this blog or via any other form of verbal, written or electronic communication.