My Swing Trading Approach
I sold my long position in SSO at $114.18 for a +1% profit, after the bulls were unable to sustain a gain yesterday. I still have one other long position that I am coming into today with and will look to hold, and also add another long position as well.
Indicators
- Volatility Index (VIX) – Practically unchanged, which is really rare, but also considering the sell-off in SPX and Nasdaq yesterday, it bodes well for the market to bounce higher in the coming days.
- T2108 (% of stocks trading above their 40-day moving average): Rallied 13% yesterday which was a strong bullish divergence from price action. But still very oversold.
- Moving averages (SPX): Failed to hold the 200-day moving average, and really struggling to find support there. Key for today’s market.
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Sectors to Watch Today
Technology was the weakest sector of the day, and it really held back the entire market. If this market is going to bounce today, and hold that bounce, it will need its largest sector to carry the day. Staples has rallied well the past two days, but still looks like a dead cat bounce to me. Materials is facing a lot of resistance overhead going back to late 2017 – avoid. Discretionary, while incredibly weak since mid September, has held on to major support levels over the past week. Healthcare has pulled 
My Market Sentiment
Considering the market was actually down yesterday -0.6%, breadth was actually good. It was your large cap stocks that really struggled, while small caps trended higher for most of the day. End of the day selling, really exposed the desire of shorts to drive this market lower, but I think more likely than not, they are getting ahead of themselves and will likely find that they are caught in a short squeeze in the coming days.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance
- 1 Long Position.
