Technical Outlook:
- Very intriguing trading session on Friday where the dip-buyers came in just at the nick-of-time to preserve the ever-so-slightly bullish dispositions of the charts.
- The 200-day moving average, despite breaking intraday rallied to close above the MA at the end of day.
- The trend-line off of the July lows managed to hold by end of day despite a break below during the trading session.
- Nice doji hammer candle on SPY.
- Volume saw a slight uptick yesterday on SPY.
- VIX posted a nice divergence yesterday showing a decrease of 2.8% down to 13.39. A significant reversal from where it was trading at earlier in the session.
- T2108 (% of stocks trading above the 40-day moving average) dropped 4% down to 32%.
- 30min SPX chart show how imperative that SPX holds last week’s lows at 2067.
- Dow down 7 straight days – not seen since August 2011 – and down 12 out of the last 14 trading sessions. Very likely to see a bounce that holds today.
- This is starting to become a regular phenomenon where the market is off to a nice start, the bears come in during the east coast lunch hour, and drive the market downward for the remainder of the day.
- Huge convergence of moving averages right at current price level – this has has had a mildly bullish effect on the market the previous occurrences.
- Solid support for SPX at the rising 200-day moving average – the last two tests have held strong on a closing basis.
- With a higher-low off of the 200-day moving average and possibly a lower-high formed on Friday, you essentially have the making of a range inside of a range.
- My biggest ongoing concern with the market right now is the inability to establish new, clear-cut all-time highs that leads to an expansion of price as well. Instead SPX gets bogged down in the 2120-2130’s range and reverses course each time.
My Trades:
- Added one new long position on Friday.
- Closed out QLD at 76.51.
- 30% Long / 70% cash.
- Remain long: FB at 94.71, MSFT at 47.48.
- Will look to add 1-2 new positions today if the market can find its footing again. Otherwise, I will manage my current positions and consider some short opportunities.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
