My Swing Trading Approach

I expect to add some additional long exposure today, as long as the early gains can remain intact in the early going. I may also add some short exposure if the market closes the gap, and continues to establish new lows .

Indicators

• VIX – Hard sell-off in VIX that dropped 5.1% on Friday. Looking to break April’s lows and establish a lower-low here. 
• T2108 (% of stocks trading below their 40-day moving average): Nothing going for it on Friday, as it was practically unchanged on the day, and sits still, at 54%. Breadth hasn’t been impressive of late, nor has has volume on the overall market. This needs to change to sustain upward momentum. 
• Moving averages (SPX): Expect a test of the 50-day moving average today, despite losing the 10-day moving average on Friday .
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Industries to Watch Today

Real Estate and Utilities led the way higher on Friday, which isn’t the two sectors you like seeing show the most strength. Healthcare broke the downtrend off of the January highs. Next task is to break the highs from April. Financials coiling and showing the potential for a similar breakout to what we saw in Energy a few weeks ago. Technology still sporting a head and shoulders pattern that is concerning. 

My Market Sentiment

The volume on SPY has been dropping off, each of the last three days. The declining trend-line that began with the January highs, could be tested here very soon. My biggest concern for the bulls is that the momentum they have had over the last three days, is quickly waning. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 1 Long Position

Recent Stock Trades – See My Past Performance Here.