My Swing Trading Approach
Still 100% cash, but will look to add 2-3 positions in the early going on this market rally.
Indicators
- VIX – Nowhere near the same amount of fear in the VIX as was seen back in February during that particular sell-off. Absolutely a bullish divergence at this point.
- T2108 (% of stocks trading below their 40-day moving average): Not quite an oversold reading. Energy holding up during the sell-off, certainly helps. But again, the fear is not seen here as it was in February, when it creeped into single digits.
- Moving averages (SPX): The 200-day moving average is currently being tested, and looking to bounce just as it did back in February.
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Industries to Watch Today
Technology has seen a real beat-down of late, but I would suspect that it will be at the top of the list of sectors leading the market higher today – same goes for Financials. Energy has held up quite remarkably over the last two weeks. 
My Market Sentiment
The market continued its extreme sell-off on Friday, and closed directly on the 200-day moving average, setting it up today for a massive bounce off of the key MA, just as it did back in February.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 100% Cash Position
