Friday, January 2, 2009

SPX Range broken?

Trading RM (along with many eyes on the market) have been looking at the 920 area in the SPX as the top of a range.  Today we saw the SPX trend up slowly all day on light volume.  SPX eventually eclipsed the 920 mark and held, albeit on light volume.  Monday's action should tell us more.  If we test and hold above 920 we will be out of our previous trading range of 850-920. 

What signs did we see today as we approached 920 indicating strength?

  • Industry leaders strong all day after brief morning sell off (XOM, GS, GOOG, FSLR etc..)

  • Another steady Vix sell off/ no panic

  • Biggest S&P down move approximately 4-5 points max

Here is a longer term shot of SPX which we first posted on 12/17/08: