My Swing Trading Approach
With weakness in the market this morning, I will be looking to manage risk to the long side, while possibly positioning myself to short the market, if necessary.
Indicators
- VIX – A 4.8% drop on Friday and setting up with a bear flag pattern, indicating more downside.
- T2108 (% of stocks trading below their 40-day moving average): Currently a healthy chart still, and up another 12.3%. A series of higher highs and higher lows in place.
- Moving averages (SPX): 10-day moving average back above the 50-day moving average for the first time since February 9th. Held the 50-day moving average but struggling with the 5-day moving average above.
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Industries to Watch Today
Energy was the market’s big winner, leading the pack in a big way. Utilities and Real Estate came in right behind, which are not the two sectors you want to see near the top. Likewise, Technology was the only sector that traded lower, and that is the sector that you want to see the most strength in, if you are bullish on this market. 
My Market Sentiment
Today the market is looking at a significant gap lower to start the week, and puts it on a track to test the March lows, if the weakness holds and increases. The weakness from last week was manageable, and not really threatening to the bull case, but should the selling accelerate this week, then consideration for the short side becomes necessary.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 4 Long positions
