My Swing Trading Approach

I have one short position. I plan to play it cautious here. If the bulls choose to rally, the market today, I will look to add some long exposure, but plan, for now, to keep the short position as long as possible. Some technical damage on the SPX chart warrants that a more conservative approach is warranted here. 

Indicators

• VIX – Massive, massive rally yesterday of 29% to just over 17. Highest close since 4/26. Another big move today could send it over 20. 
• T2108 (% of stocks trading below their 40-day moving average): Dropped 8.8% yesterday and back below 60%, to 58%. Also broke below the rising uptrend off of the February lows. 
• Moving averages (SPX): On top of losing the 5-day and 10-day on Friday, yesterday it lost the 20-day moving average as well. 
• RELATED: Patterns to Profits: Free Training Course

Industries to Watch Today

Real Estate was was the only sector to finish higher, and right now, one of the best looking charts. Huge breakdown in Financials yesterday, while also breaking below the 200-day moving average for the first time this year. You could test the closing lows today. Clearly the worst performing sector and should only be look at for shorting opportunities. Still waiting for the bounce in oil. Looks like it is setting up for one. Technology did not experience the same breakdown that the rest of the market saw yesterday – still in good shape. 

My Market Sentiment

Big day on the market that also included a significant increase in volume while breaking down through key consolidation. So far the 50-day moving average is holding, but that may be in play today. Early strength in the futures, watch to see whether it is faded at the open. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 1 Short Position

Recent Stock Trades – See My Past Performance Here.