My Swing Trading Approach
Protect profits, and I will be careful to add any new long positions in the face of a market sell-off. May consider getting short if the sell-off sustains itself.
Indicators
- VIX – Downtrend off of the February 5th highs continues to provide hard resistance for the market.
- T2108 (% of stocks trading below their 40-day moving average): Still at 63%, not great, and looking at a possible rollover.
- Moving averages (SPX): Unable to reclaim the 20-day moving average. The 5-day still providing resistance as well, too.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Energy bounce hard on Friday, but I wouldn’t put a lot of stock in its strength. The market’s leading sectors of late, Technology and Discretionary led the way to the downside, and may be seeing a transition of funds from the aforementioned sectors into Energy and Materials. Too early though to say with any certainty just yet.
My Market Sentiment
Another weak start for the market today, threatening short-term support that has held up well over the past week. The bulls need to bounce it here, or we are likely heading for a notable pullback.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 4 Long Positions
