My Swing Trading Approach

I am concerned about the breadth in the market as stocks, as a whole, are not rallying with the indices. The T2108 is actually diverging, and should that continue into today, I may hold off adding any new long positions. 

Indicators

  • Volatility Index (VIX) – Dropped 6% yesterday and gave up all the pre-market gains, yesterday. Bearish engulfing candle pattern formed. 
  • T2108 (% of stocks trading above their 40-day moving average): Bearish divergence still with breadth, as there was only a 1.7% increase, yesterday. 
  • Moving averages (SPX): Continues to test and hold the 5-day moving average, for a fifth straight day. Trading well above all other major moving averages. 
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Materials was the leader for the market and bounced perfectly off of the 200-day moving average. Technology chart looks solid and ready to establish new all-time highs once again. Cup and handle pattern on Discretionary. Industrials appears uncommitted to a direction. Energy still pulling back, could find some support here today.  

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My Market Sentiment

The resistance, as expected, at 2801 was finally broken, now the all-time highs established in January on SPX, becomes the goal. Volume on the overall market though remains very light, as is typical during the summer. 

S&P 500 Technical Analysis

swing trading strategy report 245

Current Stock Trading Portfolio Balance

  • 5 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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