My Swing Trading Approach
I will look to be playing the bounce, should it hold through the first 30 minutes of trading today. I will only add 1-2 new positions depending on the strength of the market today.
Indicators
- Volatility Index (VIX) – A 9% pop yesterday, but the descending trend-line off of the 2/5 highs has yet to be breached.
- T2108 (% of stocks trading above their 40-day moving average): Despite yesterday’s sell-off, only a 1.9% decline. Still holding the trend-line off of the 2/6 lows.
- Moving averages (SPX): SPX broke the 10-day moving average, and poised to test the 20-day MA.
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Sectors to Watch Today
Technology is an absolute dumpster fire right now. The Nasdaq by itself is down 303 points over the last three trading sessions. Due for a bounce for sure – and may be worth playing here. Energy continues to trend higher. Some declining resistance off of the May highs. Real Estate barely holding on to a bull flag pattern. Financials bull flagging over the last four trading sessions. Holding up very well in the current market environment. Staples has pulled back to the breakout level. 
My Market Sentiment
Another hard pullback yesterday that took SPX back to the 2801 price level and held it, barely, into the close. Essentially, a pullback of any kind would break this level going forward, so today is critical that it bounces higher. Otherwise, it risks a pullback to the rising trend-line off of the May 3rd lows, which currently sits at 2747.0
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 2 Long Positions
