My Swing Trading Approach

I added one additional swing-trade to the portfolio on Friday, and will look to do the same again, should the bullishness persist today.  

Indicators

• VIX – As expected in Friday’s report, the VIX had a major breakdown of 10.7% that took the index out of its current price range of the last eight days, and dropped all the way down to 13.37. 
• T2108 (% of stocks trading above their 40-day moving average): Increased by by 5.6%, not as much as I would have expected, but back above the 60% level. 
• Moving averages (SPX): Trading back above the 20-day moving average and all other major moving averages. The 5-day moving average crossed over the 10 and 50-day MA. 
• RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Healthcare is on fire right now. Not the best sector to find ideal trade setups at this point, but by far, the most bullish sector at the moment. Technology is right behind with its price action and looking at a retest of its all-time highs in the near future. Energy is showing itself capable of coming out of a base right now, and negating a previous head and shoulders pattern that was close to confirming. Discretionary in the early stages of a bounce. Still a healthy chart. Utilities on an unbelievable tear higher and very overbought. Industrials and Financials with very difficult charts here still. 

My Market Sentiment

Friday’s move was a big deal for the market. It took price out of an eight-day consolidation pattern and confirmed a higher-low in the market on the existing trend-line off of the February lows. I believe there is a solid chance of a test of the March highs this week for SPX.

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance

• 5 Long Positions

Recent Stock Trades – See My Past Performance Here.