My Swing Trading Approach
Tighten the stops, and I may add more long exposure, but the market will have to recover from the pre-market weakness in order to do so.
Indicators
- Volatility Index (VIX) – Hard bounce yesterday taking it up 6.4% to 12.87. However, still remains near support, and far from breaking out.
- T2108 (% of stocks trading above their 40-day moving average): Despite the market trading lower yesterday, there was some positive breadth in teh market, and strong bullish divergence yesterday with the T2108 rallying 6% to 61%.
- Moving averages (SPX): Broke below the 5-day moving average. The 10-day will be in play today.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Energy showed some improvement and relative strength yesterday, but its chart has become highly questionable overall, and doubtful whether it can sustain the momentum going forward. Financials momentum showing signs of languishing and wearing off – tighten the stops on those plays. Utilities showing signs of wanting to come back in play and break out of its bull flag pattern.
My Market Sentiment
Pulling back to the critical 2801 established by the March highs. Must hold the price level, or risk falling back into a sideways trading pattern.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 5 Long Positions
