My Swing Trading Approach

I’m concerned with any establishing any strong conviction in either direction. The market is at a crossroad here. Dip buyers have consistently bailed out the trapped buyers, but the charts and indicators all point to lower prices. I am willing to trade in either direction, but I need to see some conviction from the market first.

Indicators

• VIX – Shed 8% to the downside, but inside the previous trading day’s candle. I suspect a move towards 20 in the coming days is likely. 
• T2108 (% of stocks trading below their 40-day moving average): 5.6% recovery yesterday. The chart has all the makings of a rollover to it. 
• Moving averages (SPX): Held the 50-day moving average for a second consecutive day. Support doesn’t look strong here – a hard bounce is necessary to alleviate these concerns. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Energy and Materials led the way. Financials are seeing their worst losing streak – EVER. Good signs pointing to a bounce, after recovering hard off the lows of the day, yesterday, with the big banks. Technology sitting on a lot of support going back to mid-May. Industrials testing its 200-day moving average and may bounce as it has done each time this year. 

My Market Sentiment

Yesterday’s ‘bounce” was anemic and lacking at best. This morning futures are well of their lows, after some of the harsher tactics in the ongoing Trade War with China was decided against, the futures rallied hard off the lows. Today will be a key day for determining whether this market is serious about rallying and forgetting about Monday’s sell-off, or whether it plans to resume the downtrend.

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 100% Cash

Recent Stock Trades – See My Past Performance Here.