Recap for Tuesday, December 23rd by Kevin Corrigan
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Analysis of S&P 500 from QuickTakesPro’s Michael Kahn:S&P 500 (SPX) – At the time of this broadcast, SPX was around 2082.39 up 3.85 today. There has been a lot of talk about the SPX reaching new highs, which it has done today with trading left to go, but Michael thinks this may not tell the whole story. Following a recent breakdown, there was a small rally yesterday, but on low volume. If we're looking for a follow-through in price and volume to confirm a potential re-entry point in hope of a new rally, we'll need to continue to watch for significant volume behind the price rebound. Michael's window for this started yesterday opening through Monday, and we haven't yet seen this signal on the chart volume. Michael is waiting for further signals in a holiday week without showing him enough yet to commit to the market's current recovery from the recent major breakdown. According to Michael, at the very least, "This still is going to be a great case-study on waiting, and understanding how the market functions, and how supply and demand work."
It is well above its 50 and 200 day moving averages of 2015.22 and 1951.44, respectively.
The Chart of the Day is Wynn Resorts LTD (WYNN) -
Analysis of WYNN Volatility Chart and Dividends from TradeKing’s
Technical tools used:
Brian Overby’s paper trade strategies based on Michael’s analysis -
Brian’s Paper Trade -
Short Put Spread (shorter term, 17 days to exp.)
Brian’s Paper Trade -
(more aggressive,longer term)
TradeKing Options Tools used:- Detailed Quote
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