My Swing Trading Approach
Good chance I will be looking to sit on my hands today, unless the dip buyers step in and aggressively buy up this market. Raise my stops to protect profits, and wait for an opportunity to present itself.
Indicators
- VIX – Bounce here seems likely today. Up yesterday, despite the overall market doing the same. Extremely oversold.
- T2108 (% of stocks trading below their 40-day moving average): 3% decline back down to 63%. Resistance in the 66% area proving formidable.
- Moving averages (SPX): Likely to see a test of the 5-day moving average in the early going, today.
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Industries to Watch Today
Near replica of the market we saw on Friday. Energy was the leader, while Healthcare was close behind. Only 4 of the 11 sectors traded higher. Nothing else was working, and most were selling off. Industrials may be attempting to put in a lower-high here. Bearish if so. Utilities and Staples are problematic. 
My Market Sentiment
Despite the market trading higher yesterday, breadth was poor, volume low, and most stocks simply pulled back. I suspect more of the same, and for stocks to pick up to the downside. Any pullback is fine today, as long as key breakout levels are held in the chart below.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 4 Long Positions
