S&P500 Index (SPX, .INX) for QW Friday (6/16/2017)

This is ‘homework’ that I did for myself; but, in the trials and tribulations of Quadruple Witching expiry .. didn’t previously get to publish; yet, IMHO, it may offer future insights into the FED’s positioning of its FOMC meeting before a Quadruple Witching Friday to influnce the markets.  Note: from (1.b) below: 

  • The projected closing points are: 2,433.91 pts.
  • The actual QW Friday S&P 500 close:    2,433.15 +0.69 (+0.03%)

GLTA  

The S&P500 Index (SPX, .INX) is a major index used to measure health and RISK of investing in the US markets. Besides checking the performance of the S&P500 Index (SPX, .INX) on its own daily, weekly, and monthly (d-w-m) chart analysis technical review, the S&P500 is used to gage individual stock, bonds, and funds, performance. Tomorrow, is Quadruple Witching Friday.
Quadruple Witching (QW) is the expiration of stock options, stock futures, Index options, and Index futures. Each of these four categories are used by investors and traders as investments, and hedging tools against market RISKs to their capital.

The FOMC meeting June 13th to 14th, resulted in the expected quarter point rate increase in the overnight rates charged to banks … now at 1.0 to 1.25 percent. The FOMC surprised the markets with more info on plans to reduce its balance sheet. The markets are struggling to determine whether the reduction in the Fed’s balance sheet over time will positively, or negatively, impact the US economy, and the US markets. IMHO, the FED knows the four QWs very well and uses them to psychologically manipulate the markets to get the markets to help the Fed to hit its projected targets.

I thought it might be advantageous to have a ‘before and after’ picture of June’s QW week.  The ‘before’ review (before both the FOMC meeting and QW Friday) to include the analysis below from June 9th’s close and perhaps Thursday night’s (after the FOMC meeting, but, before QW Friday) review.  The ‘after’  review to encompass not only the market’s close Friday; but, also the Russell Reconstitution info to be released after the markets close Friday … for Monday’s trading.

I. See ‘before both the FOMC meeting and QW Friday’ here:

S&P500 Index (SPX, .INX) (d-w-m) for Monday (6/12/2017)

 

 

II. As this ‘after the FOMC meeting’ and ‘before QW’ S&P500 Daily chart review shows:

as of Thursday, (6/15/2017) S&P500 Close at 2,432.46 pts. -5.460

Currently the Moving Average Convergence Divergence (MACD) for the S&P500 Index (SPX, .INX) is bearish since it is trading below its signal line. The MACD crossed below its signal line Thursday; yep, the day before QW. Since the MACD crossed below its moving average, S&P 500 INDEX (SPX)’s price has been unchanged, and has ranged from a low of 2,418.53 to a high of 2,433.95. The S&P500 MACD is not in an Overbought/Oversold range. There have been no divergence signals within the last 5 trading periods.
MACD Value: +12.551                Signal Line: +12.684

Friday’s (6/9/2017) Relative Strength Index (RSI) for MU was 60.60.
———————–

spx 20170615d

Chart 1: S&P500 Index, Daily, EOD, O-H-L-C w/Resistances (r2, r1), Pivot Point (PP), and Supports (s1, s2) as of Thursday, (6/15/2017)’s close.

———————–

(1) Analysis of DAILY chart activity through Thursday’s (6/15/2017) close at 2,432.46 pts.

The current trend is up and all orders on the long side may be considered. If already holding long positions, look to take partial profits on any retracement to 2,415.70. Traders with remaining long positions, after profit taking, should consider placing capital conserving stops in the region of 2,403.59. Be prepared for a potential short term price pull back to the 2,420.40 area.

  • Suggested placement of capital conserving stops:
  • If Long, exit all contracts at: 2,403.59
  • If Short, exit all contracts at: 2,446.20

 

(1.a) Additional S&P500 DAILY chart info:

  • Overall, the bias in points is: Upwards.
  • Short term: Points are stalling.
  • Intermediate term: Points are ranging.

 

(1.b) DAILY chart points QW projection ranges (6/12/2017 – 6/16/2017):

  • Note (1.b.1): prices are vulnerable to a correction towards 2,386.95 pts.
  • The upper projected target is: 2,465.55 pts.
  • The lower projected target is: 2,402.26 pts.
  • The projected closing points are: 2,433.91 pts.
  • Note: the above S&P500 DAILY chart points projection ranges are for reference only, and can be easily exceeded by Mr. & Ms. Fickle Markets.
  • ———————–

 

—  Thursday, 6/1/2017   thru    Friday 6/30/2017  ——

 

  Hope the above Standard & Poors 500 Index, (Index S&P500, SPX, .INX)  calculations for Monday, 6/19/2017, day, plus week, and month, help your investing and trading planning today …

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