My Swing Trading Approach
I may add another position to the portfolio today, depending on whether the market can sustain its pre-market strength. I will look to also preserve profits by raising the stops on existing positions.
Indicators
- VIX – Only a 5% drop yesterday in the VIX to settle at 20.06, but a strong reversal off of its intraday highs. Tight consolidation over the last two weeks.
- T2108 (% of stocks trading below their 40-day moving average): This has, and continues to be, a huge bullish divergence for the market. Incredible bounce yesterday, and was one of my first signals about the potential for a market bounce early on yesterday, as it was trading higher, when the market was much lower.
- Moving averages (SPX): Dropped back below the 5 and 200-day moving average intraday. By the close, the bulls managed to recapture them, and the 10-day moving average as well.
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Industries to Watch Today
Staples led the way, followed by Healthcare and Discretionary. Strong technical bounces across the board, except for Materials, Energy and Utilities – the three of which barely participated in yesterday’s rally. 
My Market Sentiment
Yesterday’s move by the bulls was a huge statement, and a good sign that a bottom has been put in for now. There is a double bottom pattern that has formed but will need to break last week’s highs to confirm.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 5 Long Positions
