My Swing Trading Approach
I am looking to add 1-2 new long setups to the portfolio today, if the market rally can continue, targeting large cap, quality stocks that are bouncing off of key support.
Indicators
- VIX – Looking top heavy, and likely to see a move back into the lower 20’s, and possibly lower this week, if the market rally persists.
- T2108 (% of stocks trading below their 40-day moving average): Hit massive extremes of 8.6%. Could very well mark the bottom of the correction.
- Moving averages (SPX): SPX tested and held the 200-day moving average. Look for a test of the 5-day moving average, which has rejected price at every step of the current downtrend.
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Industries to Watch Today
All of the sectors managed to finish in the green on Friday, minus Energy. All sectors exhibiting doji hammers. Technology showed the most strength. Financials looks very promising. 
My Market Sentiment
Hard bounce on Friday off of the 200-day moving average. Futures are higher this morning, suggesting a continuation of the current bounce. Hard bounces can last 3-4 days.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 3 Long positions
