My Swing Trading Approach
I will be looking to add 1-2 new positions to the portfolio as long as the early morning strength can sustain itself. Playing the rising trend-line off off the May lows, offers a great buying opportunity in this market.
Indicators
- VIX – Tested and rejected at the 50-day moving average yesterday. Looking for further downside today.
- T2108 (% of stocks trading below their 40-day moving average): Pullback of 2% yesterday falls in line for the downside seen from the market of late. If the market bounces big today, I’ll be interested in how strong this indicator performs as well.
- Moving averages (SPX): Tested the 20-day moving average and successfully held it. Yesterday marked a 5/10 MA crossover to the downside.
- RELATED: Patterns to Profits: Free Training Course
Industries to Watch Today
Utilities continues to see a strong bounce in recent days, but I expect it to be short lived as it remains in a downtrend overall. Staples has formed an impressive base and consolidated nicely above its 50-day moving average. Expecting further upside. I still don’t trust the price action out of Energy or Financials. Discretionary, Technology and Healthcare remain my go-to sectors.
My Market Sentiment
SPX has pulled back 3 of the last 4 trading sessions, and the pullback, while on higher than average volume, appears to be a healthy one that has taken price back to the rising trend-line off of the May lows and held. Now looking for the bounce for a bigger move higher.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 4 Long Positions
