My Swing Trading Approach
I held off adding any new long positions yesterday, while continuing to increase my stops on all my trades. I am doing the same again today. The possibility of getting short exists as well, as you have renewed trade war jitters which creates a headline-risk trading environment, allowing for renewed fear in the market.
Indicators
- VIX – Despite falling 6% yesterday, expect a strong pop in the indicator today.
- T2108 (% of stocks trading below their 40-day moving average): Small divergence yesterday with SPX rising and T2108 declining slightly. I expect a further decline today if today’s bearishness holds.
- Moving averages (SPX): Back above the 5-day moving average, but likely to challenge the 10 and 20-day moving averages today depending on the market’s weakness.
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Industries to Watch Today
Consumer Cyclical and Technology continues to be your go-to sectors to trade. Healthcare is coming about very nicely as well. With increased worries about a trade war with China, you may start to see the Utilities and Staples start garnering some interest from the street. Financials still remains a heap of trash. 
My Market Sentiment
The trade wars being renewed here, and China showing a willingness to retaliate, isn’t going to do this market any favors, and a pullback to the existing trend-line seems likely here. If it can hold, would offer a great dip buying opportunity.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 5 Long Positions
