My Swing Trading Approach
I may consider adding some short positions if the bulls manage to break below the support levels established last week on SPX. Low volume market filled with a number of false moves, makes trading less, the better option.
Indicators
- VIX – Remains in a consolidation pattern, but expect a breakout fairly quickly to the upside, if the market continues faltering.
- T2108 (% of stocks trading below their 40-day moving average): False breakout for now, as the indicator dipped back below 66%.
- Moving averages (SPX): Sitting right on top of the 5 and 10-day moving average, both of which will likely break at the open today.
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Industries to Watch Today
Utilities has seen some buying interest in recent days, while Financials broke out of its bull flag trading pattern yesterday. Staples continue to exhibit a bear flag pattern, while Energy saw a significant amount of profit taking in the afternoon part of the trading session. Industrials flirting with a breakout head-fake. 
My Market Sentiment
Yesterday’s afternoon collapse definitely raises concerns on the sustainability of the current market run. Bulls need to hold the lows from last week, or the potential for a retest of the 200-day MA looms large. Lack of volume in the market of late is making current price swings very unreliable.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 4 Long Positions
