My Swing Trading Approach
Strong momentum right out of the gate today and the potential this week for a move back to all-time highs, will have me looking for 1-2 new long setups today.
Indicators
- Volatility Index (VIX) – Gave up its gains on the day in the final hour of trading. Looking at a break back into the 11’s today.
- T2108 (% of stocks trading above their 40-day moving average): Bullish divergence intraday as there was a much overdue bounce of 5%, putting the index back to 41%. Still oversold, and likely to see further improvement today.
- Moving averages (SPX): Closed on the 5-day moving average and 10-day moving average which have both converged together.
- RELATED: Patterns to Profits: Training Course
Sectors to Watch Today
Real Estate had a massive bounced off of key support on Friday. Utilities had a similar bounce. Neither I would trust though. Healthcare continues the steady climb higher though. Staples appears ready to break down. Technology is very close to a breakout to the upside here. Watch for the bounce in Industrials. I did an in-depth analysis on each sector last week that you can read right here. 
My Market Sentiment
Down five of the last six days. October has been bullish in midterms years, and we are setup for a bounce higher today. Though I don’t expect anything to change that will eliminate the bearish wedge that continues to tighten itself around price.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 3 Long Positions
