The New Year approaches unimpeded, while the major indices continue to march sideways in light holiday trade.
Early economic data is in the record books. U.S. final third quarter GDP revised up to 3.5%. I find that noteworthy and suspicious at the same time.
SPY blocks were traded late Wednesday at 225.81 and 226.00. As the Opening Bell nears, we are trading slightly below this level. If we remain below we anticipate a test of the lower range, printed over the past week.
SPY 60 minute shows RSI trending along the 50 zone, so price action is right where we might expect. While we are slightly below the 9/20ema, price is trading in a narrow band along the upper range of this small 8-day pattern. TICK cumulative and MACD show little bullish sentiment or momentum respectively. Stochastic is pointing lower. Volume was light.
We’ll discuss more in the LIVE session this morning, as we anticipate price will tell us what to do next. We anticipate little change.
Stochastic is a bound indicator, so it cannot continue higher as strength persists. MACD however is not, so we will watch the latter for directional momentum signals.
We will broadcast LIVE this morning on TICKER TV. Join us at 9:25AM EST as we comment on the markets and potential candidates.
Six trading days left in 2016! My how time flies……..
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