My Swing Trading Approach

Holiday trading is upon us. I may look to add another position if the morning strength looks to hold. Less is still more in this market still, as price action is still unfavorable in the Dow, and range bound on SPX. 

Indicators

• VIX – Still range bound, but hard reversal took the VIX 3% lower. Range is tight here, wait for the breakout higher or lower before deciding its ultimate direction.
• T2108 (% of stocks trading above their 40-day moving average): Hard 15% bounce off of the lows of the day. Pretty much where it closed at the day prior. Looks likely there will be more upside going forward. 
• Moving averages (SPX): Recaptured the 5-day and 50-day moving averages yesterday. The 10-day is back in play here. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology showed up finally and carried the market off the lows. Utilities still surprisingly strong and coming out of the bull flag pattern with more room to run. Financials showing signs of finally wanting to bounce and this would be a good week for it. Discretionary has yet to really bounce here, but yesterday’s reversal was a good sign of one coming. Energy and Materials still two difficult sectors to trade. 

My Market Sentiment

Yesterday showed a surprisingly sharp reversal off of key support. Worth watching is the inverse head and shoulders pattern forming on the 30 minute chart. Confirms with a move over 2745 on SPX. Holiday trading today means volume will likely be extraordinarily light, and likely continue into the end of the week.  

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 3 Long Positions

Recent Stock Trades – See My Past Performance Here.